- By Aditya Pratap Singh
- Wed, 24 Apr 2024 05:12 PM (IST)
- Source:PTI
The RBI on Wednesday prohibited Kotak Mahindra Bank from enrolling new customers through its online and mobile banking channels and issuing new credit cards with immediate effect after the lender found deficiencies in its IT risk management. These measures are necessary based on the significant concerns arising from the Reserve Bank's IT audit of the bank for the years 2022 and 2023, as well as the bank's continued failure to address these concerns in a comprehensive and timely manner, the RBI stated.
"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," the RBI's statement said.
It stated that for two consecutive years, the bank was deemed to be deficient in its IT risk and information security governance, which is contrary to regulatory requirements.
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The private sector bank has been asked to stop adding new customers and issuing new credit cards through its online and mobile banking platforms with immediate effect. The bank will, however, continue to give services to its existing customers, including those having Kotak bank credit card.
What will happen to existing customers
The central bank has barred Kotak bakk from onboarding new customers but all the services will remain functional for the existing customers. So, if you have an account with Kotak Bank or if you are using credit card of kotak bank the service will be functional for you.
(With PTI's Inputs)
