After the RBI took stringent actions, Ashok Vaswani, the Chief Executive and Managing Director of Kotak Mahindra Bank, confirmed on Thursday that the bank has been proactive in meeting the concerns that have been raised by the regulatory authority.
Vaswani's statement shared on Kotak Mahindra Bank's official social media sites declared that the bank is in constant discussion with the RBI to address any concerns that come up.
As part of the orders passed by the RBI on Wednesday, Kotak Mahindra Bank was ordered to stop bringing in new customers to its online and mobile banking channels, along with being prohibited from issuing new credit cards. This was done due to the repeated breach of IT regulations and the discovery of significant weaknesses in the IT risk management by the bank.
In a message directed towards its clientele, Vaswani, who assumed his position in January of the current year, stated that the bank has temporarily halted the issuance of new credit cards while assuring uninterrupted services for existing customers.
"We are actively engaged in remedying the identified concerns and maintaining continuous communication with the regulatory body to promptly address any emerging issues," Vaswani affirmed.
Soon after the RBI's intervention, the bank resolved on Wednesday to incorporate new technologies to shore up its IT base and committed itself to working very closely with the apex bank to resolve all pending issues at the earliest possible.
The stock of Kotak Mahindra Bank lost 10.85%, closing at a price of Rs 1,643 per share on the BSE against a 0.66% rise on the benchmark index.
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