Himani Chowdhary Instagram – BIG 🚨 Why is RBI suddenly doing this?
🔴 WHAT HAPPENED?
➡️ The Reserve Bank of India (RBI) has ordered Kotak Mahindra Bank to stop the following:
* Taking on new customers through online or mobile banking.
* Issuing any new Credit cards.
🔴 WHY IT HAPPENED?
* RBI found serious problems with the bank’s IT systems, especially in the areas of security and disaster recovery.
* These problems caused frequent system outages, including a major one on April 15, 2024, which hurt customers.
* The bank failed to fix these problems quickly enough, despite warnings and instructions from the RBI.
🔴 WHAT IT MEANS FOR YOU
* Existing customers of Kotak Mahindra Bank can still use their accounts and credit cards 💳.
* The bank cannot grow its digital customer base until it proves to the RBI that it has fixed its IT problems.
**Additional Notes**
* The RBI will hire an outside company to audit Kotak Mahindra Bank’s IT systems.
* Only after the bank fixes the issues found in the audit will the RBI lift the restrictions.
* The RBI may take further action against the bank.
* If you have a co-branded credit card with Kotak, be aware of this news.
#rbi #kotakbank #kotak #udaykotak #banned #digitalservices #financialnews | Posted on 25/Apr/2024 12:54:06
