Kotak family-owned Infina Finance, listed as one of the promoted group units of Kotak Mahindra Bank, has now been barred by the RBI from taking new customers and issuing new credit cards with immediate effect.
The RBI order issued on Wednesday said the commercial restrictions on Kotak Mahindra Bank have been imposed in the interest of customers as the Uday Kotak-controlled bank was assessed deficient in IT risk and information security governance.
BSE data shows that, as of March 2024, the promoter and promoter group entity hold 25.89 per cent stake in Kotak Mahindra Bank.
Uday Kotak is the promoter and single largest shareholder of Kotak Mahindra Bank with 25.71 per cent stake. The remaining 0.18 percent stake is held by other promoter group entities.
According to data submitted by State Bank of India (SBI) to the Election Commission, Infina Finance donated electoral bonds worth Rs 60 crore to the BJP, which were purchased in denominations of Rs 1 crore in 2019, 2020 and 2021.
The RBI order said: “In the absence of robust IT infrastructure and IT resource management framework, Kotak Mahindra Bank's Core Banking System (CBS) and its online and digital banking channels have faced frequent and significant disruptions over the last two years. Had to do. Recently there was a service disruption on April 15, 2024, resulting in serious inconvenience to customers. “The Bank is materially falling short of building the necessary operational flexibility due to its failure to build IT systems and controls to keep pace with growth.”
The RBI order issued on Wednesday said the commercial restrictions on Kotak Mahindra Bank have been imposed in the interest of customers as the Uday Kotak-controlled bank was assessed deficient in IT risk and information security governance.
BSE data shows that, as of March 2024, the promoter and promoter group entity hold 25.89 per cent stake in Kotak Mahindra Bank.
Uday Kotak is the promoter and single largest shareholder of Kotak Mahindra Bank with 25.71 per cent stake. The remaining 0.18 percent stake is held by other promoter group entities.
According to data submitted by State Bank of India (SBI) to the Election Commission, Infina Finance donated electoral bonds worth Rs 60 crore to the BJP, which were purchased in denominations of Rs 1 crore in 2019, 2020 and 2021.
The RBI order said: “In the absence of robust IT infrastructure and IT resource management framework, Kotak Mahindra Bank's Core Banking System (CBS) and its online and digital banking channels have faced frequent and significant disruptions over the last two years. Had to do. Recently there was a service disruption on April 15, 2024, resulting in serious inconvenience to customers. “The Bank is materially falling short of building the necessary operational flexibility due to its failure to build IT systems and controls to keep pace with growth.”
