The Reserve Bank of India (RBI) has remove the restrictions on Kotak Mahindra Bank, permitting it to once again onboard new customers online and issue new credit cards. These limitations were initially imposed in April 2024 because of significant issues with the bank’s IT infrastructure. Now that the necessary corrective actions have been implemented, the bank is set to fully resume its digital operations.
Why Were Restrictions Imposed on Kotak Mahindra Bank?
In April 2024, the RBI instructed Kotak Mahindra Bank to cease onboarding customers via digital platforms and put a stop to the issuance of new credit cards. This decision was based on IT audits conducted in 2022 and 2023, which found deficiencies in multiple areas, including:
- IT inventory management
- Patch and change management
- User access controls
- Vendor risk assessment
- Data security and business continuity planning
The RBI observed that despite repeated warnings, Kotak Mahindra Bank had not sufficiently addressed these risks, leading to regulatory intervention.
