RBI removed the ban on Kotak Mahindra Bank, permission to connect new customers and release credit card -Newsops

New Delhi:

The Reserve Bank of India (RBI) has lifted sanctions on Kotak Mahindra Bank for about 9 months. This ban was imposed on the bank due to serious flaws related to technology. Now the RBI said that the bank has made necessary improvements, so it is being allowed to issue new credit cards and connect new customers through online and mobile banking. Is.

Why did RBI ban?

During the tenure of former Governor Shaktikant Das, the Reserve Bank took strict action on Kotak Mahindra Bank in May 2023. The IT (IT) investigation of the bank was conducted in 2022 and 2023 consecutive years, which revealed many flaws. It found disturbances in important cases like IT Inventory Management, Patch and Change Management, User Access Management, Vendor Risk Management, Data Security, Data Leak Prevention, Business Continuity and Disaster Recovery.

The RBI had said that the bank does not have an IT infrastructure, due to which digital banking was repeatedly affected and customers faced problems. Due to this, the bank was banned, so that it could not add new customers online and could not issue new credit cards in a digital way. However, existing customers continued to get banking services.

Kotak Mahindra Bank improved in flaws

Kotak Mahindra Bank took several important steps to follow the RBI rules. The bank got an IT audit from an external advisor and upgraded its technology. In addition, data security and disaster recovery was also strengthened.

The bank had said in its statement that it is working with the RBI to resolve the rest of the issues as soon as possible and strengthening the technology infrastructure to give customers a better digital banking experience.

The RBI has accepted the reforms made by the bank and now Kotak Mahindra Bank can add new customers in a digital manner again. Apart from this, the bank has also been allowed to issue new credit cards. That is, customers will now be able to apply for online credit card (Apply Credit Card Online).

What does it mean for bank customers?

• Now customers will be able to open new accounts through Kotak Mahindra Bank’s mobile banking and net banking.
• New and existing customers can now apply from the bank for a digital credit card.
• The bank’s digital banking services can be better and safe than before.

After this permission of RBI, things will become normal for the customers of Kotak Mahindra Bank as before. Bank now digital (Digital banking) Mediums can add new customers and also run credit card services smoothly. However, RBI will still monitor the digital capabilities of banks so that customers can get better and safe banking experiences.