The Indian financial system, recovering from a history of bad loans, faces new challenges as banks grapple with technology pitfalls. Kotak Mahindra Bank Ltd. was recently penalised for security deficiencies, highlighting broader risks of fraud and system vulnerabilities in the digital age. Regulatory scrutiny intensifies amid concerns about financial stability and cybersecurity in the evolving landscape of digitisation.
Kotak Bank ban: In the past, the RBI removed restrictions on the issuance of credit cards on HDFC Bank in August 2021, while the restrictions on HDFC Bank’s Digital 2.0 program only got lifted only in March 2022.