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After the Reserve Bank of India (RBI) barred Kotak Mahindra Bank from signing up new customers following the failure to fix its IT Systems, the bank's CEO has 'reassured' all customers that all operations via all channels continue uniterrupted.
"You continue to have access to all your existing banking services including branches, bank accounts, Credit/Debit Cards, ATMs, Mobile and Net Banking facilities. However, we have temporarily paused the issuance of new Credit Cards," Ashok Vaswani wrote in a letter addressed to customers on Thursday.
Vaswani added that Kotak Mahindra Bank is actively working to address the concerns raised and are in constant communication with the regulator to resolve any issues promptly.
Also Read: Kotak Mahindra Bank is the latest student in RBI's classroom
The RBI on Wednesday flagged "serious deficiencies and non-compliances" by Kotak in a statement shortly after the stock market closed on Wednesday. The third-most valued private bank in terms of market capitalisation was asked to stop the functions cited "with immediate effect".
The stock price of the private sector lender plummeted by up to 12 per cent to Rs 1,620 on BSE on Thursday.
In FY23, Kotak811 accounted for 72% of new savings accounts. More than 50% of credit cards, unsecured loans, trading accounts and recurring deposits were cross-sold to Kotak811 customers, the bank's FY23 annual report stated.
Also Read: Is your Kotak 811 account safe? Can Kotak Mahindra credit card customers renew cards? 8 key queries answered
The bank had clarified on April 24 that its branches continue to welcome and onboard new customers, providing them with all the bank's services, apart from issuance of new credit cards.
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Vaswani added that Kotak Mahindra Bank is actively working to address the concerns raised and are in constant communication with the regulator to resolve any issues promptly.
Also Read: Kotak Mahindra Bank is the latest student in RBI's classroom
The RBI on Wednesday flagged "serious deficiencies and non-compliances" by Kotak in a statement shortly after the stock market closed on Wednesday. The third-most valued private bank in terms of market capitalisation was asked to stop the functions cited "with immediate effect".
The stock price of the private sector lender plummeted by up to 12 per cent to Rs 1,620 on BSE on Thursday.
In FY23, Kotak811 accounted for 72% of new savings accounts. More than 50% of credit cards, unsecured loans, trading accounts and recurring deposits were cross-sold to Kotak811 customers, the bank's FY23 annual report stated.
Also Read: Is your Kotak 811 account safe? Can Kotak Mahindra credit card customers renew cards? 8 key queries answered
The bank had clarified on April 24 that its branches continue to welcome and onboard new customers, providing them with all the bank's services, apart from issuance of new credit cards.
( Originally published on Apr 25, 2024 )
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