The Reserve Bank of India (RBI) has instructed Kotak Mahindra Bank to stop issuing new credit cards immediately. The RBI has also limited the bank’s ability to acquire new customers through online and mobile banking channels.
- These actions stem from significant concerns identified during the RBI’s IT examinations of the bank for 2022 and 2023.
- Over two consecutive years, the bank has been found deficient in IT risk management and information security governance, violating regulatory guidelines.
- Despite corrective action plans issued by the RBI in 2022 and 2023, the bank has been substantially non-compliant.
- Existing customers, including credit card holders, will continue to receive services from the bank despite these restrictions.
Question : Which bank has the Reserve Bank of India (RBI) instructed to stop issuing new credit cards and acquiring online customers immediately?
a) HDFC Bank
b) ICICI Bank
c) Kotak Mahindra Bank
d) State Bank of India
Correct answer: c) Kotak Mahindra Bank
