RBI directs Kotak Mahindra Bank to stop new customer onboarding through online banking
The Hindu
RBI directs Kotak Mahindra Bank to stop new customer onboarding and credit card issuance due to IT compliance issues.
The Reserve Bank of India today directed Kotak Mahindra Bank Limited to cease and desist, with immediate effect, from onboarding of new customers through its online and mobile banking channels and issuing fresh credit cards.
The bank shall, however, continue to provide services to its existing customers, including its credit card customers.
ALSO READ | Uday Kotak resigns as Kotak bank MD and CEO 4 months ahead of end of tenure
“These actions are necessitated based on significant concerns arising out of Reserve Bank’s IT Examination of the bank for the years 2022 and 2023 and the continued failure on part of the bank to address these concerns in a comprehensive and timely manner,” RBI said on Wednesday.
“Serious deficiencies and non-compliances were observed in the areas of IT inventory management, patch and change management, user access management, vendor risk management, data security and data leak prevention strategy, business continuity and disaster recovery rigour and drill, etc,” RBI said.
“For two consecutive years, the bank was assessed to be deficient in its IT Risk and Information Security Governance, contrary to requirements under Regulatory guidelines. During the subsequent assessments, the bank was found to be significantly non-compliant with the Corrective Action Plans issued by the Reserve Bank for the years 2022 and 2023, as the compliances submitted by the bank were found to be either inadequate, incorrect or not sustained,” it added.
“In the absence of a robust IT infrastructure and IT Risk Management framework, the bank’s Core Banking System (CBS) and its online and digital banking channels have suffered frequent and significant outages in the last two years, the recent one being a service disruption on April 15, 2024, resulting in serious customer inconveniences,” the banking regulator said.
Run 3 Space | Play Space Running Game
Traffic Jam 3D | Online Racing Game
Duck Hunt | Play Old Classic Game
Nissan cuts U.S. production, offers buyouts to workers in global restructuring plan to boost profitability.
Finance Minister Nirmala Sitharaman to present record eighth consecutive Union Budget, focusing on economic growth and middle-class relief.
Deputy Commissioner of Police in Manesar imposes prohibitory orders ahead demonstration by temporary Maruti workers, sparking criticism from labour rights activists.
SoftBank is in talks to invest as much as $25 billion into OpenAI, the Financial Times reported.
Benchmark indices Sensex and Nifty rebounded, led by Bajaj Finance and Bajaj Finserv, despite early losses and FII selling.
Rupee weakens against US dollar due to FED's hawkish outlook, foreign fund outflows, and domestic market trends.
According to the company, the technology, protected by multiple international patents, facilitates the creation of a plastic-to-plastic circular economy, where commonly used plastics such as polyolefin packaging no longer need to be down-cycled, incinerated or landfilled at the end of their life. Instead, they can be continuously recycled in a closed-loop, without any loss of quality.
Meta beat Wall Street expectations for fourth-quarter revenue on Wednesday but predicted sales in the current first quarter may not meet forecasts.
Union Budget 2025: Analysis of Indian economy's growth patterns, fiscal spending, and impact on consumption trends, highlighting need for policy changes.
OpenAI warns of Chinese companies reverse engineering AI models, sparking tensions over intellectual property protection.
NCLT orders inquiry against Byju's resolution professional, restores Aditya Birla Finance as financial creditor, nullifies CoC reconstitution.
U.K. Chancellor Rachel Reeves signals that Britain was not destined to decline, announces a slew of projects and regulatory changes.
The Centre on January 29 urged airlines to maintain ‘reasonable fares’ for devotees making their way to Prayagraj for the ongoing Maha Kumbh. IndiGo said it has slashed down ticket prices by 30% to 50% on flights to and from the pilgrim city.
The Centre on January 29 urged airlines to maintain ‘reasonable fares’ for devotees making their way to Prayagraj for the ongoing Maha Kumbh. IndiGo said it has slashed down ticket prices by 30% to 50% on flights to and from the pilgrim city.
Union Budget 2024 slashes agriculture subsidies, farmers demand MSP implementation, loan waivers, and comprehensive crop insurance in 2025 Budget.
Budget updates: India's Union Budget 1955-56 under Finance Minister C.D. Deshmukh laid the foundation for industrialization and economic growth.
Stock market indices Sensex and Nifty surged nearly 1% on Wednesday, driven by IT, capital goods, and industrial stocks.
Union Cabinet approves higher ex-mill price for ethanol from C heavy molasses, advancing 20% ethanol blending target to 2025-26.