In a surprising move, the CTO of Kotak Mahindra Bank resigned in early 2025 following concerns raised by the Reserve Bank of India (RBI) about the bank’s IT infrastructure. The RBI’s audit revealed gaps in cybersecurity measures, operational reliability, and disaster recovery protocols.
The Broader Context
As Indian banks rapidly digitize, the risks of cyberattacks and IT system failures grow. Recent cyber breaches in other major banks have underscored the need for robust IT governance. For Kotak Mahindra Bank, this incident highlights the challenges of balancing innovation with security.
Industry Reaction
The RBI’s stricter stance is pushing banks to invest in advanced cybersecurity measures, including AI-driven threat detection and blockchain-based transaction verification. This shift aims to ensure safer digital banking experiences for millions of customers.
