RBI Limits Kotak Mahindra Bank’s Online Customer Onboarding and Credit Card Issuance

Subsequent assessments revealed significant non-compliance by the bank with the Corrective Action Plans issued by the Reserve Bank for the years 2022 and 2023. The bank’s submissions were deemed inadequate, incorrect, or unsustainable. Due to an inadequate IT infrastructure and IT Risk Management framework, the bank’s Core Banking System (CBS) and its online and digital banking channels experienced frequent and substantial outages over the past two years, with the most recent occurring on April 15, 2024, resulting in considerable inconvenience to customers.

Furthermore, the bank failed to establish necessary operational resilience due to deficiencies in building IT systems and controls. Despite ongoing high-level engagement between the Reserve Bank and the bank over the past two years to address these concerns and enhance its IT resilience, the outcomes have been unsatisfactory.