RBI restricted Kotak Mahindra Bank after finding serious IT and information-security deficiencies
Company: Kotak Mahindra Bank Limited
Summary
On April 24, 2024, the Reserve Bank of India directed Kotak Mahindra Bank Limited to stop onboarding new customers through online and mobile banking and to stop issuing new credit cards. Existing customers, including existing credit-card customers, could continue receiving services. RBI said the restrictions followed its IT examinations for 2022 and 2023 and the bank's continued failure to address concerns comprehensively and promptly. The regulator identified serious deficiencies and non-compliance involving IT inventory, patch and change management, user-access management, vendor-risk management, data security and data-leak prevention, business continuity, and disaster-recovery rigor. RBI also stated that compliance submitted against corrective-action plans had been inadequate, incorrect or not sustained, and that repeated outages had caused serious customer inconvenience. The restriction was a supervisory action, not a criminal judgment. On February 12, 2025, RBI lifted it after reviewing remedial measures, compliance submissions and an external auditor's report. The case is therefore marked resolved on that date while retaining the regulator's documented findings that caused the original restriction. Primary-source record of RBI action: https://updates.manupatra.com/newsroom/trans/viewdoc.aspx?i=ptiDy4oUEz7W4RhahAaT6h93RFUeTV40hI1vo81W7g5uCfRP5tL0pktJVchar%2843%29F5g3qk&id=IMjr1XBLrB3yVo37O8iVkjF3eEHeAxm0Oc8doW6%2FzS%2FhHQmurHyRUBecQA6grmZoVpiTyAAWk4beuLiG5HmUHQ%3D%3D Kotak Mahindra Bank disclosure confirming removal of restrictions: https://www.kotak.bank.in/content/dam/Kotak/investor-relation/governance/governance-sebi-tab/2025/removal-of-supervisory-restrictions/update-removal-of-rbi-embargo.pdf
Record details
- Category
- Corporate Misconduct
- When it happened
- 2022–February 12, 2025
- Status
- Resolved (February 12, 2025)
- Severity
- high
- Added to Rotten Company
Source
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