Kotak Bank rejected your e-Payment transaction because e-Payments was done to a party holding ING Vysya Bank or ING Vysya Bank now Kotak account. ING Vysya Bank has now changed to Kotak Mahindra Bank .
1. Alter your transaction and select the bank as Kotak Mahindra Bank.
2. Enter the appropriate IFS code, and re-send to the bank.
You should update the bank details in the ledger too.
Note: For further information on integration of these banking systems refer to Integration of ING Vysya and Kotak Mahindra Banking systems .