Kotak Mahindra Bank Responds To RBI Curbs: Restrictions Will Not Materially Impact Overall Business
The response from Kotak Mahindra Bank comes after the RBI directed it to stop issuance of fresh credit cards and onboarding of customers via online and mobile banking channels.
Kotak Mahindra Bank Ltd. said on Wednesday that the restrictions by Reserve Bank of India will not materially impact its overall business. It has implemented new technologies to strengthen its IT systems and would collaborate with the RBI to promptly address balance issues following the restrictions, the lender said.
Additionally, it affirmed uninterrupted services for existing customers.
"The Bank has taken measures for adoption of new technologies to strengthen its IT systems and will continue to work with RBI to swiftly resolve balance issues at the earliest," it said.
In terms of issuance of credit cards, the bank said, "Our branches continue to welcome and onboard new customers, providing them with all the Bank’s services, apart from issuance of new credit cards."
The statement from India's third-largest private lender by market capitalisation comes after the regulator clamped down on the bank, directing it to stop issuance of fresh credit cards and onboarding of new customers via online and mobile banking channels with immediate effect.
The regulator found lack in IT risk and information security governance for two consecutive years; in 2022 and 2023. It found continued failure on part of the bank to address these concerns in a comprehensive and timely manner, the RBI said in a statement.