A day after Reserve Financial institution of India requested Kotak Mahindra Financial institution to cease onboarding new prospects by means of its on-line and cellular banking channels and issuing recent bank cards, MD and CEO Ashok Vaswani mentioned that the lender is in fixed discussions with the regulator to deal with its considerations.
“We’re actively working to deal with the considerations raised and are in fixed communication with the regulator to resolve any points promptly,” he mentioned in a press release.
“Amid latest updates concerning the RBI’s directive to the financial institution, I need to reassure you of our providers and deal with any considerations that will have arisen,” he added, highlighting that operations stay uninterrupted for present prospects throughout all channels together with branches, financial institution accounts, credit score and debit playing cards, ATMs, cellular and web banking services.
On April 24, RBI had mentioned that the sanctions had been based mostly on “important considerations” arising out of IT Examination of the financial institution for 2022 and 2023 and the “continued failure on a part of the financial institution to deal with these considerations in a complete and well timed method”.
“Critical deficiencies and non-compliances had been noticed within the areas of IT stock administration, patch and alter administration, person entry administration, vendor danger administration, information safety and information leak prevention technique, enterprise continuity and catastrophe restoration rigour and drill, and many others,” the central financial institution mentioned in a strongly worded launch.
It added that financial institution was poor in its IT Danger and Data Safety Governance for 2 consecutive years and was later additionally discovered to be “considerably non-compliant” with the Corrective Motion Plans issued by RBI for 2022 and 2023.
RBI additionally highlighted that the speedy development within the financial institution’s digital transaction volumes, together with transactions pertaining to bank cards, including that the restrictions shall be reviewed upon completion of a complete exterior audit.