Kotak Mahindra Bank Responds to RBI Order
Kotak Mahindra Bank has acknowledged the recent order from the Reserve Bank of India (RBI) that restricts the bank from onboarding new customers through online and mobile banking channels and issuing fresh credit cards. The bank has assured its existing customers that their services will remain uninterrupted.
In a statement, Kotak Mahindra Bank said that it is taking steps to address the concerns raised by the RBI. The bank is committed to working with the regulator to achieve the required technology standards. It is also investing in fortifying its IT systems to ensure compliance with the Baseline Cyber Security Framework for Banks.
The RBI's order stems from an examination of Kotak Mahindra Bank's IT systems conducted over the past two years. The examination revealed serious deficiencies and non-compliances in areas such as IT inventory management, patch and change management, user access management, vendor risk management, data security, and data leak prevention strategy.
The bank has been under scrutiny for its IT systems for some time. In 2022 and 2023, the RBI found the bank to be deficient in its IT Risk and Information Security Governance. The bank's subsequent corrective action plans were deemed inadequate, incorrect, or unsustainable.
Despite the challenges, Kotak Mahindra Bank remains committed to serving its customers. The bank's branches will continue to welcome and onboard new customers, providing them with all the Bank's services, other than the issuance of new credit cards. Existing customers will continue to have access to all their banking services, including branches, bank accounts, credit, debit cards, ATMs, mobile and net banking.
The bank's stock price closed down by 1.81 percent on Friday.