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ARTICLE · 05 MAY 2024

AKP Banking & Finance Digest- April 29, 2024

AK & Partners
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The Reserve Bank of India ("RBI") has directed Kotak Mahindra Bank Limited to immediately cease onboarding new customers through its online and mobile banking channels and issuing fresh credit cards.

IndiaFinance and Banking
Anuroop Omkar
Anuroop Omkar

1. Regulatory Updates

1.1. India

1.1.1. RBI directs Kotak Mahindra Bank to cease new customer onboarding and credit card issuance

The Reserve Bank of India ("RBI") has directed Kotak Mahindra Bank Limited to immediately cease onboarding new customers through its online and mobile banking channels and issuing fresh credit cards. This action is taken due to significant concerns arising from the RBI's IT examination of the bank for the years 2022 and 2023, as well as the bank's failure to address these concerns adequately and promptly. The examination revealed serious deficiencies and non-compliances in various areas such as IT inventory management, patch and change management, user access management, vendor risk management, data security, and business continuity. Despite continuous engagement with the bank, satisfactory outcomes have not been achieved. The restrictions will remain in place until the bank completes a comprehensive external audit approved by the

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