RBI bars Kotak Mahindra Bank from onboarding new customers through online, mobile banking; issue new credit cards.
this is a welcome move. This is a fraud bank, sends promotional emails with zero fee offers and after issuing card levies the fees. So they deserve it truly.
The Reserve Bank of India on Wednesday asked Kotak Mahindra Bank to cease issuing new credit cards and onboarding new customers through an online portal.
RBI stopped Kotak Mahindra Bank from issuing new credit cards due to serious shortcomings in the bank's IT security practices. The bank failed to address concerns raised by the RBI for two consecutive years regarding IT Risk and Information Security Governance. This poses a risk to customer data and financial security. While existing customers are not affected, the bank is restricted from adding new ones or issuing new credit cards until these issues are resolved.
RBI is in Full Action Mode!
RBI imposed similar restrictions on HDFC Bank in 2020.
A Few Banks and Fintech banned are Federal Bank and South Indian Bank Stopped Onboarding New Customers for Co-Branded Credit Cards Basis RBI Guidelines including SBM Bank India Ltd.
What's the duration of the ban ?
The RBI actions are necessitated based on significant concerns arising out of RBI's IT Examination of the bank for the years 2022 and 2023 and the continued failure on part of the bank to address these concerns in a comprehensive and timely manner, the RBI said.
The bank shall, however, continue to provide services to its existing customers, including its credit card customers, the RBI said. "These actions are necessitated based on significant concerns arising out of Reserve Bank’s IT Examination of the bank for the years 2022 and 2023 and the continued failure on part of the bank to address these concerns in a comprehensive and timely manner," the RBI said.
Explaining the action, the RBI said dor two consecutive years, the bank was assessed to be deficient in its IT Risk and Information Security Governance, contrary to requirements under Regulatory guidelines.
During the subsequent assessments, the bank was found to be significantly non-compliant with the Corrective Action Plans issued by the Reserve Bank for the years 2022 and 2023, as the compliances submitted by the bank were found to be either inadequate, incorrect or not sustained, the central bank said.
"In the absence of a robust IT infrastructure and IT Risk Management framework, the bank’s Core Banking System (CBS) and its online and digital banking channels have suffered frequent and significant outages in the last two years, the recent one being a service disruption on April 15, 2024, resulting in serious customerinconveniences," the RBI said.
During the investigations, the RBI found that the bank is materially deficient in building necessary operational resilience on account of its failure to build IT systems and controls commensurate with its growth.
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this is a welcome move. This is a fraud bank, sends promotional emails with zero fee offers and after issuing card levies the fees. So they deserve it truly.
https://www.moneycontrol.com/news/business/rbi-...
I am waiting for when SBI card and BOB Card get RBI ka danda. Two most haramkhor companies.
SBI Card ko bahot bade se bada fine lagna chahiye. Main mithai batunga aur Twitter pe unko aisa jalil karunga. Sarkari Badmash of India hai woh card company
What's the duration of the ban ?