 "Kotak Mahindra Bank actively working to address RBI's concerns: CEO")
A day after the severe action by the Reserve Bank of India (RBI), Kotak Mahindra Bank’s Chief Executive Officer and Managing Director Ashok Vaswani on Thursday said the lender is “actively working” to address the concerns raised by the regulator. The private sector lender is in constant communication with the RBI to resolve any issues, he said in a statement posted on Kotak Mahindra Bank’s social media handles. On Wednesday, the RBI barred Kotak Mahindra Bank from onboarding any new customers through its online and mobile banking channels and also prohibited it from issuing fresh credit cards.
The action was taken for repeated non-compliance with IT norms and after the discovery of “serious deficiencies” in Kotak Mahindra Bank’s IT risk management. In the communication addressed to customers, Vaswani, who assumed office in January this year, said it has “temporarily paused” the issuance of new credit cards and added that its operations continue uninterrupted for all the existing customers.
(Disclaimer: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd)