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RBI says that Kotak Mahindra Bank introduced therapeutic measures to address supervisory concerns and presented compliance to the Reserve Bank.
The ban on Kotak Mahindra Bank was initially imposed on April 24, 2024.
The Reserve Bank of India (RBI) on Wednesday lifted the ban on Kotak Mahindra Bank, allowing the lender to resume new customers through online channels and issue new credit cards. These bans were initially imposed on April 24, 2024.
The Mumbai -based bank was instructed to stop the customer through their online and mobile banking platforms, as well as stop issuing new credit cards.
“Next, the bank introduced therapeutic measures to address supervisory concerns and presented compliance to the Reserve Bank. The bank also started an external audit, with prior approval of RBI to validate compliance. The RBI said that now, after satisfying themselves on the basis of the remedial measures taken by the Reserve Bank, and the reserve bank, it has decided to lift the sanctions imposed on Kotak Mahindra Bank Limited.
The Central Bank’s action stems from the IT exams held in 2022 and 2023, which manifests the continuous failure of the lender widely and immediately to address major concerns.
“IT Inventory Management, Patch and Change Management, User Access Management, Vendor Risk Management, Data Security and Data Prevention Strategy, Business Continuat and Dieteer Recovery Rigidity and Drill, have serious deficiencies and non-non-explanations in areas of hardness and drill, etc. The RBI mentioned in April 2024 that in two consecutive years, the bank was evaluated to its IT risk and lack of information safety regime.
