RBI action on Kotak Mahindra Bank: RBI bans Kotak Mahindra Bank from adding new customers through mobile banking or online.
The Reserve Bank of India (RBI) on Wednesday immediately banned Kotak Mahindra Bank from adding new customers and issuing credit cards through online and mobile banking. RBI said in a statement that this action has been taken due to shortcomings in IT risk management and information security operations of Kotak Bank. The statement said these actions were necessary based on significant concerns raised by the bank’s IT audit for the years 2022 and 2023 and the bank’s continued failure to address these concerns in a timely and appropriate manner.
Serious shortcomings were seen here
“Serious deficiencies and non-compliances were observed in the areas of IT inventory management, user access management, vendor risk management, data security and data leak prevention strategies, business continuity and post-crisis recovery efforts,” the RBI said. ”It said that for two consecutive years, IT risk and information security operations at the bank were found to be deficient, contrary to the requirements under regulatory guidelines.
Prevented from adding new customers online
Kotak Mahindra Bank has been directed to stop adding new customers and issuing new credit cards through its online and mobile banking with immediate effect. However, the bank will continue to provide services to its customers including its existing credit card holders.
What is the condition of the stock?
Kotak Mahindra Bank shares closed with gains on Wednesday. The bank’s shares today closed at Rs 1843.05 with a gain of 1.64 per cent or Rs 29.80 on the Bombay Stock Exchange. 52 week high of this share is Rs 2063. Whereas, 52 week low is Rs 1,666. The market cap of the bank closed at Rs 3,66,383.76 crore on BSE today.
