Big action by RBI on Kotak Mahindra Bank… Ban on adding new customers, will not be able to issue even credit cards RBI Action On Kotak Mahindra Bank: Citing data security and other concerns, the Reserve Bank of India (RBI) has stopped Kotak Mahindra Bank from adding new customers and issuing new credit cards with immediate effect.
Big news has come regarding private sector Kotak Mahindra Bank. The Reserve Bank of India has stopped banks from adding new customers through online or mobile banking apps. Along with this, RBI has also banned issuing new credit cards by banks. The Central Bank has issued a press release and shared information in this regard and has expressed its concern about many shortcomings in the bank.Taking major action under Section 35A of the Banking Regulation Act, 1949, the Reserve Bank of India (RBI) has banned Kotak Mahindra Bank from adding new customers with immediate effect. However, the bank will continue to provide all types of services smoothly to its existing customers. This also includes existing credit card customers, who will continue to get the facilities they were already getting.
RBI has said that this action on Kotak Mahindra Bank was taken as concerns were raised regarding various shortcomings in the bank during the IT examination for the year 2022-23. Kotak Mahindra Bank has failed to resolve these concerns within the stipulated time.The Reserve Bank says that in two years the bank did not solve the problems related to its computer equipment, software updation or access to its system, nor did it manage data security. In such a situation, this action has been taken due to regulatory violation. Along with this, the Central Bank has said that now after the external audit, the next step will be taken after reviewing the restrictions.
RBI said that due to lack of IT risk management framework, the core banking system of the bank and its online and digital banking channels have seen several outages in the last two years, due to which the bank customers are facing problems. Had to do. According to RBI, serious deficiencies were found in the way Kotak Mahindra Bank manages its IT inventory and its approach to data security.
According to the central bank, in the interest of customers and to prevent any possible prolonged outage, after monitoring it for two years, it has decided to impose certain restrictions on the bank, which will not only affect the bank’s ability to provide good customer service. Can seriously affect efficiency.The effect of the ban action taken by RBI on Kotak Mahindra Bank can be seen on Kotak Mahindra Bank Share tomorrow on Thursday. At the close of trading in the stock market on Wednesday, shares of Kotak Mahindra Bank closed at the level of Rs 1,842.95 with a rise of 1.65 percent or Rs 29.90. This bank, which has a market capitalization (Kotak Mahindra Bank Market Cap) of Rs 3.66 lakh crore, may have an adverse effect on the shares of this bank.
It is a set of rules in the Banking Regulation Act made in the year 1949, which regulates the banking sector in India. This Act gives RBI the power to license banks as well as regulate banking in India. Under Section 35A of the Banking Regulation Act, 1949, RBI can give instructions to banks and take any action. RBI can also impose a ban under this Act. It is noteworthy that the Reserve Bank of India had also taken action against Paytm Payments Bank under the same Act some time ago.