Hello Magicnation
FamilyHow are you all...? I hope your well. In today's Magicnation threads I want to share an important information with you. In today's thread, we are going to talk about why RBI has imposed some restrictions on Kotak Mahindra Bank. Well, all the banks that work in India, whether it is a small bank or a big bank, government bank or a private bank, all these banks are handled by RBI.
Reason : RBI was keeping an eye on Kotak Mahindra Bank for a long time. They came to know through social media and complaints that Kotak Mahindra Bank's IP is not working properly. RBI has given notice to the bank many times so that it can improve its service. But it has not followed their orders properly. On May 15, many users complained on social media. That Kotak Mahindra Bank app does not work properly, many times the users face a lot of problems in logging in to the account and debiting and transferring money from the bank. On 24 april, RBI imposed some limitations on Kotak Mahindra Bank and made it closed. Because Kotak Mahindra Bank users were not allowed to bank online with zero balance They were providing credit cards to the users as well. Which was not right at all. Hence RBI has taken this decision. From now onwards, new user accounts will not be opened in Kotak Mahindra Bank. until their investigation is complete.
On Wednesday (24 April), the RBI barred Kotak Mahindra from onboarding new customers through its online and mobile banking channels and issuing fresh credit cards with immediate effect after it found “serious deficiencies" in the lender’s IT risk management. The action was taken as per Section 35A of the Banking Regulation Act, 1949 which empowers the RBI to direct banks “to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the depositors or in a manner prejudicial to the interests of the banking company".What did the RBI order?
Why did the RBI take such action?
The regulator, RBI, issued the immediate “cease and desist" to Kotak Mahindra Bank owing to significant concerns arising out of the bank’s failure to address concerns in its IT management.
In a statement, the RBI said : “Serious deficiencies and non-compliances were observed in the areas of IT inventory management, patch and change management, user access management, vendor risk management, data security and data leak prevention strategy, business continuity and disaster recovery rigour and drill, etc."
That's all for today's threads. See you soon with another new interesting news. I hope you all liked this information.
Thank You
Sachin Saini ( Magic Nation Community Member )
