A day after Kotak Mahindra Bank was barred from onboarding new customers through its online and mobile channels and issuing fresh credit cards, the lender issued a public statement clarifying that the existing customers will get uninterrupted services, including credit card, mobile and net banking.
Ashok Vaswani, the newly appointed managing director and chief executive officer of Kotak Mahindra Bank (KMB), on April 25 said that the bank is actively resolving the tech issues raised by the Reserve Bank of India (RBI) and is actively in touch with the banking regulator to address concerns.
“I wish to emphasize that our operations that our operations continue uninterrupted for all existing customers across all our channels. You continue to have access to all your existing banking services, including branches, bank accounts, credit, debit cards, ATMs, mobile and net bankings, Vaswani said in a post on X.
He added: “Rest assured, we are actively working to address the concerns raises and are in constant communication with the regulator to resolve any issues promptly.”
Regarding new credit cards, he said: “However, we have temporarily paused the issuance of new credit cards.”
RBI’s action came after inspecting the bank’s IT systems for the past two years. It noted that the bank has failed to resolve issues.
Kotak Mahindra Bank’s share price dropped 10.85 per cent to close at Rs 1,643 on the BSE on Thursday. Kotak Mahindra Bank’s market capitalisation, which stood at Rs 3,66,383.76 crore at the end of Wednesday, fell to Rs 3,26,615.40 crore by the end of Thursday.