RBI bars Kotak Mahindra Bank from adding new customers; Is your money in the bank safe?

Kotak Mahindra Bank has been directed by the Reserve Bank of India (RBI) to cease onboarding new customers through its online and mobile banking channels and issuing fresh credit cards from immediate effect. The central bank has barred the private sector lender from new issuances due to deficiencies in the bank's IT system in 2022 and 2023. 

However, the RBI order raises doubts for the existing customers of the bank over the safety of money in their respective accounts and credit card functionalities. Even though Kotak Mahindra Bank cannot onboard new customers or issue fresh credit cards, but the bank's existing customers need not worry over RBI's latest order.