India

RBI Bars Kotak Mahindra Bank, New Credit Cards and Online Customer Onboarding Suspended

The Reserve Bank of India (RBI) has directed Kotak Mahindra Bank to halt the process of onboarding new customers through its online and mobile banking platforms, as well as to cease issuing fresh credit cards. However, existing customers, including those with credit cards, will continue to receive services from the bank, as per the RBI’s order.

The RBI’s decision comes as a response to significant concerns raised during the bank’s IT examination for the years 2022 and 2023. Despite these concerns, the RBI notes a continued failure by Kotak Mahindra Bank to adequately address these issues in a timely and comprehensive manner.

The directive from the RBI means that Kotak Mahindra Bank customers will no longer be able to apply for new credit cards or open accounts through mobile banking channels.

The RBI’s decision to bar Kotak Mahindra Bank stems from serious deficiencies and non-compliances observed in various areas, including IT inventory management, patch and change management, user access management, vendor risk management, data security, data leak prevention strategy, business continuity, and disaster recovery preparedness.

Also read: List of States Going to Polls In 2nd Phase Voting of Lok Sabha Elections 2024

The central bank highlights that the bank has been found lacking in its IT Risk and Information Security Governance for two consecutive years. Particularly concerning are the frequent and significant outages experienced by the bank’s Core Banking System (CBS) and its online and digital banking channels over the past two years, including a recent service disruption on April 15, 2024, which resulted in substantial inconvenience to customers.

Kavya Bhatt

Recent Posts

Hina Khan Hails 11 Years Of PM Modi’s Leadership; Highlights National Progress

As the nation marks 11 years under PM Modi's leadership, actress Hina Khan shares her…

6 hours ago

Subhash Ghai Hails PM Modi’s Transformative Vision For India

Subhash Ghai has praised PM Narendra Modi’s leadership for catalysing India’s growth and changing the…

7 hours ago

India & Central Asia Boost Rare Earth Cooperation At Delhi Meet

India and five Central Asian nations have agreed to deepen cooperation on rare earths and…

8 hours ago

PM Modi’s Beej Se Bazaar Tak Vision Reshapes Indian Agriculture

Prime Minister Modi has redefined Indian agriculture with the ‘Beej Se Bazaar Tak’ vision, transforming…

8 hours ago

EV Sales Cross 4% Mark In May; Signalling Steady Shift To Green Mobility

EV sales topped 4% of passenger vehicle retail in May 2025, signalling growing demand for…

8 hours ago

Self-Reliant Defence Industry Marks India’s Strategic Security Ascent

One year into Modi 3.0, reforms have reduced poverty, strengthened defence, and accelerated the digital…

9 hours ago