Banks failing at tech, fintech failing at banking, quips Ashneer Grover

Taking a dig at Kotak Mahindra Bank after the Reserve Bank of India's (RBI) action, BharatPe co-founder Ashneer Grover on Thursday said that while banks are failing at implementing robust technology to cater to their customers, fintech companies are unable to perform banking operations.

The central bank has barred Kotak Mahindra Bank from taking new customers online and issuing fresh credit cards with immediate effect. In a post on X social media platform, Grover said that it is ironic that "banks se tech nahi ho rahi, fintech se banking nahi ho rahi (banks are failing at tech while 
fintech is failing at banking)".

Grover, however, did not directly name Paytm Payments Bank while referring to fintech. The RBI had imposed restrictions on Paytm Payments Bank (PPBL). Paytm last week received a go-ahead from the National Payment Corporation of India (NPCI) to start the user migration to new Payment System Provider (PSP) bank handles.

Meanwhile, the RBI, in its order, stated that Kotak Mahindra Bank's Core Banking System (CBS) and its online and digital banking channels have suffered frequent and significant outages in the last two years, resulting in serious customer inconveniences.

After RBI's decision, Kotak Mahindra Bank saw its shares fall more than 10 per cent in Thursday's trade.