- Kotak Mahindra Bank to recruit 400 engineers to upgrade technology systems after RBI criticism for IT deficiencies.
- RBI’s recent directive halted Kotak’s digital client acquisition and credit card issuance due to IT infrastructure shortcomings.
- Despite the setback, Kotak Mahindra remains committed to strengthening its IT capabilities, doubling resources to address issues.
Kotak Mahindra Bank is gearing up for a significant technology overhaul by hiring 400 engineers this year. This move comes in response to recent criticism from the Reserve Bank of India (RBI), which directed Kotak to halt digital client acquisition and credit card issuance due to deficiencies in its IT infrastructure.
The RBI’s directive has impacted Kotak Mahindra’s reputation and franchise, although its financial impact is anticipated to be minimal, according to CEO Ashok Vaswani. Despite this setback, the bank remains steadfast in its commitment to bounce back stronger. Kotak plans to double its efforts, resources, and expenditure to address IT-related issues, currently allocating 10% of its total expenditure to IT.
The bank is collaborating with the RBI to appoint an external auditor for its IT systems, a process expected to conclude soon. Kotak has already onboarded over 500 engineers in the past two years, with many recruited from tech giants like Google and Amazon. This strategic hiring aims to bolster the bank’s technological capabilities and ensure seamless operations in the future.
