The Reserve Bank of India has acted against Kotak Mahindra Bank, a significant private sector bank. The RBI has taken strong measures against Kotak Mahindra Bank, preventing it from accepting new clients and credit card applications. Kotak Mahindra Bank is not permitted by RBI to extend new credit cards or acquire new clients via online or mobile banking.
Kotak Mahindra Bank Action
The Reserve Bank of India, the country’s banking regulator, has taken strong action against Kotak Mahindra Bank, prohibiting it from opening new accounts or granting credit cards via mobile or online banking platforms. Kotal Mahindra Bank would not be permitted to issue new cards following this RBI order. However, the RBI has made it clear that Kotak Mahindra Bank will keep offering its services to its existing customers and credit card holders as before.
RBI intervention
Existing credit clients will continue to receive services from Kotak Mahindra Bank notwithstanding the RBI’s ban on the bank issuing new credit cards through its online or mobile channels. Additionally, Kotak Mahindra Bank is not permitted to accept new clients via mobile or internet banking by the RBI. The bank has been requested to keep providing its services, nevertheless.
Why was the bank the target of legal action?
Following Section 35A of the Banking Regulation Act of 1949, the Reserve Bank of India has taken this action. The Reserve Bank of India has stated that following the external audit, the bank’s regulations will be reevaluated. Due to deficiencies in Kotak Bank’s information security and IT risk management procedures, the RBI has taken this action. According to the RBI, the decision was made in light of important concerns arising from the Reserve Bank’s IT audit for the years 2022 and 2023 and the bank’s continued failure to address these concerns in a comprehensive and timely manner.
This action has been taken against the bank due to its widespread failures and many shortcomings. With immediate effect, the bank has to cease accepting new clients and issue new credit cards via online and mobile banking channels, per the RBI’s directive. The bank has been told to carry on providing credit card and banking services as usual.
Read More: Jio Cinema has released two new premium plans, with so many benefits for just ₹ 29!
|
|
  YouTube |
         Click Here |
| Â Facebook Page |
         Click Here |
| Â Instagram |
         Click Here |
| Â Telegram Channel |
         Click Here |
