Kotak Mahindra Bank: Following the Reserve Bank of India’s (RBI) directive prohibiting Kotak Mahindra Bank from onboarding new customers online and issuing fresh credit cards due to concerns over data security and IT infrastructure, the bank has issued a statement assuring existing customers of uninterrupted services while addressing the regulatory concerns.
Kotak Mahindra Bank Responds to RBI’s Directive
In response to the RBI’s order, Kotak Mahindra Bank stated that it has received instructions to temporarily halt onboarding new customers via online and mobile banking channels, as well as issuing fresh credit cards. However, the bank emphasized its commitment to adopting new technologies and strengthening its IT systems to resolve the issues highlighted by the regulator swiftly.
Assures Existing Customers of Uninterrupted Services
“We have received an order from the RBI which directs us to temporarily pause onboarding of new customers though our online and mobile banking channels and issuance of fresh credit cards. The Bank has taken measures for adoption of new technologies to strengthen its IT systems and will continue to work with RBI to swiftly resolve balance issues at the earliest,” the statement read.
The bank reassured its existing customers that services, including credit card, mobile, and net banking, will continue without any disruptions. Additionally, Kotak Mahindra Bank confirmed that new customers can still be onboarded at its branches, where they will have access to all banking services except for the issuance of new credit cards.
The RBI’s action came after it highlighted “significant concerns” during its IT examination of Kotak Mahindra Bank in the past year and in 2022. The regulatory body noted that the bank had failed to address these concerns comprehensively and in a timely manner, prompting the directive to halt certain operations until the issues are resolved.
Kotak Mahindra Bank’s response indicates its commitment to compliance with regulatory requirements and its proactive approach to enhancing data security and IT infrastructure. The bank’s assurance of uninterrupted services aims to maintain customer confidence amidst regulatory scrutiny and underscores its focus on customer satisfaction and operational resilience.
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