After Paytm RBI Takes Action On Kotak Mahindra Bank: 5 Points About The Ongoing Crisis


2024/04/25 10:49:09 IST

What at halt?

    Reserve Bank of India on Wednesday barred Kotak Mahindra Bank from onboarding new customers and issuing new credit cards with immediate effect.

Credit: wikimediacommons

Cause of action

    The action from RBI has come based on discrepancies found in the I-T examination for 2022 and 2023 and continued failure to address them timely.

Credit: wikimediacommons

Discrepancies

    The Central Bank underlined that Kotak Mahindra Bank’s core banking system and its online channels have suffered frequent outages in the past two years, which caused inconvenience to customers.

Credit: pinterest

Audit

    RBI said that it will review the restrictions after completion of a ‘comprehensive external audit.’

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Stock plunges

    A sharp decline has been witnessed in the share prices on Thursday after RBI’s action. Kotak Mahindra Bank shares plunge almost 10% following the RBI order.

Bank’s assurance

    Despite restrictions from the central bank, Kotak has assured the existing customers of uninterrupted services, emphasizing its commitment to swiftly resolving the matter.

Credit: kotak

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