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  

via_LocalCircles_IMG_0629___20240424041924___.jpeg
View all 7 comments Below 7 comments
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  
Post a Comment

Related Posts

    • Airport charges getting ridiculous

      Travelling to Bengaluru airport has become more expensive. BIAL has imposed an entry fee for both private and commercial vehicles. Cabs to pay Rs 150 for up to 7 min, Rs 300 for more.

      By Ashima Gupta
      /
    • Underage Drunken Driving

      2 people killed day before here in Pune after a Porsche car, driven by a 17-year-old minor, crashed into their motorcycle in Pune. Accused granted bail within 15 hours. Look bail conditi...

      By Asha Rathi
      /
    • In life threatening situations can one counterattack a dog

      See attached video where a Cop shoots at dogs trying to maul a person in Philadelphia United States. What is the legal position in India for police in such scenarios? Didn’t find ...

      By Nikita Mehra
      /
    • Lift safety issues persist

      Yesterday in Noida a lift went through the tower roof because of maintenance negligence. See attached.

      By Radha Puri
      /
    • Hallmarking of Gold Jewellery

      This latest survey of LC is good as it helps consumers in not getting cheated or misled https:...

      By Aditi Mitra
      /
    • Why no red label on brain damaging products like Coke and Pepsi

      Why is the Government not putting front of the pack red labels on drinks like pepsi and coke. 10 year olds are drinking 5-6 glasses in a birthday party. Drinking Coca-Cola or Pepsi: This...

      By Shikha Chhabra
      /
    • Rising health insurance premiums

      Is a very serious issue and I am glad that LocalCircles has taken it up. In UP the survey was published in the navbharat times and i am attaching for this who read hindi.

      By RN Chopra
      /
    • Health insurance premium increase

      The reliable Indian Express paper is quoting our circle survey and saying that health insurance premiums for 52% people who have personal policy have risen by 25% or more in last 12 months.

      By Neelima Verma
      /
    • deteriorating services of health insurance services.

      This is really a true picture of current scenario. Despite increase in premium amount continuously in ;ast 2-3 years after covid, service standards have drastically gone from bad to worst by these ...

      By Alok Khullar
      /
    • Plight of health Insurance claimants

      I must complement localcircles management and members for being the most effective media in the country to quantify public plight on various issues and bringing it out. The attached sto...

      By Aditi Gupta
      /
    • Average temp going up by 5-8 degrees

      See attached friends. Average summer have gone up in India by 5-8 degrees in last 5 years. Like this we will have 50 degrees in Delhi soon. This is climate change for us.

      By Sudesh Rai
      /
Share
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)