RBI bars Kotak Mahindra Bank from onboarding new online customers. admin, April 24, 2024 The RBI has announced placing certain restrictions on Kotak Mahindra Bank as part of its efforts to address concerns related to IT resilience, following the bank’s deficiencies in managing its IT infrastructure and securing data. The restrictions include a temporary pause on onboarding new customers through online and mobile banking channels, as well as issuing fresh credit cards. However, the bank will continue to provide uninterrupted services to existing customers, including credit card, mobile, and net banking. These measures have been imposed to safeguard the interests of customers and prevent potential prolonged outages that could impact the bank’s ability to deliver efficient customer service and affect the digital banking and payment systems. The RBI has noted that the bank’s digital banking channels have experienced frequent outages due to the absence of a robust IT infrastructure, and the rapid growth in digital transactions has further strained the IT systems. Despite ongoing engagement with the bank over the past two years to address these concerns, the outcomes have not been satisfactory. The central bank has stated that these restrictions will be subject to review after the completion of a comprehensive external audit, along with the remediation of any deficiencies identified in the audit and RBI inspections. Additionally, the restrictions are independent of any other regulatory or enforcement actions that may be initiated by the RBI against the bank. Kotak Mahindra Bank has acknowledged the RBI’s directive and reassured its existing customers of uninterrupted services while expressing its commitment to swiftly resolve the identified IT issues. The bank’s history and current services, which range from commercial banking to stock broking, mutual funds, insurance, and investment banking, have also been outlined. As of December 31 last year, the bank has 4.8 crore customers, 1,869 branches, and 3,239 ATMs. Kotak Mahindra Bank