Is there an issue with many banks

The RBI has directed Kotak Mahindra Bank to cease and desist, with immediate effect, from (i) onboarding of new customers through its online and mobile banking channels and (ii) issuing fresh credit cards

See attached.

This is after the action against Paytm.

How many more skeletons are there in India’s banking closet?

Is our money safe in the bank. Why were entities like paytm and kotak allowed to onboard customers without proper kycs?

Are other payment platforms and banks also under scrutiny. Can some details be shared with consumers? more  

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IT systems at banks need to be constantly upgraded and security enhanced to prevent abuse. Processes and practices should be robust and constantly upgraded as things emerge. This is beyond the KYC process which is no more than a binary and based on self-declarations. No bank is immune from security threats and proactive action should be in place. This issue could happen with any bank. more  
More than KYC what is needed is a KYE (know your enoloyee). Frauds can happen only with the connivance of the employees because they are responsible for verification od transactions and keep an eye out for potential pitfalls. more  
I do not think there is any issue but looks like they have been doing lot of video kyc and onboarding customers without doing much scrutiny since if the credit card does not get paid the bank will slowly go into npa and rbi must have noticed this from their sources and issued a warning to kotak to stop more  
Dear All, We need not worry. RBI is taking the necessary steps to ensure that the individual banks stay afloat and the overall banking system remains sound. As the last resort the GoI will step in to rescue the depositors because the ultimate responsibility rests with the GoI. Otherwise, we should have seen many riots on the streets due to the depositors' loss of their deposits with the legit banks. (Chit funds and other scams are a different matter.) In the last 15 years some vested interests did spread rumors that certain financial institutions were about to go belly up thereby leaving the depositors high and dry. (Think of Axis Bank, LIC, etc etc.) Did we live to witness such doomsday? No. So relax. more  
Why such a successful bank is lacking in IT upgradation ? There must be some justification in RBI's drastic action. more  
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