The Reserve Bank of India (RBI) on Wednesday directed the Kotak Mahindra Bank Ltd. (Kotak Bank) to immediately stop onboarding new customers through its online and mobile banking channels and issuing fresh credit cards. The bank can, however, continue to serve existing customers, including credit card customers. RBI said it observed âserious deficiencies and non-compliancesâ in the bankâs 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. The bankâs Core Banking System (CBS) and its online and digital banking channels have suffered frequent and significant outages in the last two years because of an absence of robust IT infrastructure and IT risk management framework. This has caused serious customer inconveniences, RBI said. âThese actions are necessitated based on significant concerns arising out of Reserve Bankâs IT examination of the bank for the years 2022 and 2023 and the continued failure on the part of the bank to address these concerns in a comprehensive and timely manner,â the central bank said in its directive. The RBI also said that it has observed rapid growth in the volume of the bankâs digital transactions, including transactions pertaining to credit cards, building further load on the IT systems. âThe bank has taken measures for adoption of new technologies to strengthen its IT systems and will continue to work with the RBI to swiftly resolve balance issues at the earliest,â Kotak Bank said in a statement through an external agency. RBIâs business restrictions on Kotak Bank are aimed at preventing possible prolonged outages which can impact the bankâs ability to render efficient customer service as well as the financial ecosystem of digital banking and payment systems. The Hinduâs Editorials Surat symptoms: On the BJP and the elimination of political contest Hot button: On the voter and heat exposure The Hinduâs Daily News Quiz Which company was recently in the news for allegedly having higher sugar content in baby food products sold in India, as well as African and Latin American countries? Nestle Danone Gerber Mondelez To know the answer and to play the full quiz, click here. [logo] Editor's Pick 25 April 2024 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [Arrow]Open in browser
[Mail icon]More newsletters RBI tells Kotak Bank not to onboard new customers online The Reserve Bank of India (RBI) on Wednesday directed the Kotak Mahindra Bank Ltd. (Kotak Bank) to immediately [stop onboarding new customers]( through its online and mobile banking channels and issuing fresh credit cards. The bank can, however, continue to serve existing customers, including credit card customers. RBI said it observed âserious deficiencies and non-compliancesâ in the bankâs 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. The bankâs Core Banking System (CBS) and its online and digital banking channels have suffered frequent and significant outages in the last two years because of an absence of robust IT infrastructure and IT risk management framework. This has caused serious customer inconveniences, RBI said. âThese actions are necessitated based on significant concerns arising out of Reserve Bankâs IT examination of the bank for the years 2022 and 2023 and the continued failure on the part of the bank to address these concerns in a comprehensive and timely manner,â the central bank said in its directive. The RBI also said that it has observed rapid growth in the volume of the bankâs digital transactions, including transactions pertaining to credit cards, building further load on the IT systems. âThe bank has taken measures for adoption of new technologies to strengthen its IT systems and will continue to work with the RBI to swiftly resolve balance issues at the earliest,â Kotak Bank said in a statement through an external agency. RBIâs business restrictions on Kotak Bank are aimed at preventing possible prolonged outages which can impact the bankâs ability to render efficient customer service as well as the financial ecosystem of digital banking and payment systems. The Hinduâs Editorials [Arrow][Surat symptoms: On the BJP and the elimination of political contest Â](
[Arrow][Hot button: On the voter and heat exposure]( The Hinduâs Daily News Quiz Which company was recently in the news for allegedly having higher sugar content in baby food products sold in India, as well as African and Latin American countries? - Nestle
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