Risk assessment in digital banking operation:A study of Kotak Mahindra Bank Ltd.

Abstract

The rapid growth of digital banking has transformed the Indian banking sector, offering convenience and efficiency to customers while simultaneously introducing new operational and security risks. This study focuses on risk assessment in digital banking operations at Kotak Mahindra Bank Ltd., examining the key risks associated with online and mobile banking, including cybersecurity threats, transaction fraud, operational errors, and system downtime. Using a combination of primary data from customer surveys and secondary data from bank reports and RBI guidelines, the study evaluates the effectiveness of risk management practices employed by the bank.The findings indicate that while Kotak Mahindra Bank has implemented robust security measures and operational controls, certain areas such as user awareness, fraud detection, and real-time risk monitoring require further strengthening. The study provides insights into best practices for mitigating risks in digital banking and emphasizes the importance of continuous monitoring, technological upgrades, and customer education to ensure secure and reliable banking services