The constraints imposed by the Reserve Bank of India (RBI) on Kotak Mahindra Bank due to lapses in IT inventory management underscore the central bank’s vigilance against systemic banking risks, experts noted.
They suggested that this measure may prompt other banking institutions to exercise greater diligence in adhering to regulatory requirements.
Karan Gupta, Director & Head – Financial Institutions at India Ratings & Research, emphasized the regulator’s intention to mitigate potential systemic vulnerabilities arising from identified gaps in bank operations.
Additionally, Shreyansh Shah, Research Analyst at StoxBox, remarked that these actions transcend individual bank actions, aiming to safeguard the broader banking sector from systemic risks.
