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.

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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


    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.

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    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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