We will continue to work closely with the RBI to shortly resume digital onboarding of new customers and issuing fresh credit cards: Spokesperson, Kotak Mahindra Bank
FinTech BizNews Service
Mumbai, February 12, 2025: On April 24, 2024, the Reserve Bank of India had, in exercise of its powers under Section 35A of the Banking Regulation Act, 1949, imposed certain business restrictions on Kotak Mahindra Bank Limited (hereinafter referred to as ‘the bank’). The bank was directed to cease and desist from:
onboarding of new customers through its online and mobile banking channels, and
issuing fresh credit cards.
Subsequently, the bank initiated remedial measures to address the supervisory concerns and submitted compliances to the Reserve Bank. The bank also commissioned an external Audit, with prior approval of RBI, to validate the compliances. Now, having satisfied itself based on the submissions, and remedial measures undertaken by the bank, the Reserve Bank, has decided to lift the afore-mentioned restrictions placed on Kotak Mahindra Bank Limited. A detailed communication has been issued to the bank in this regard.
“We welcome the Reserve Bank of India’s (RBI) decision to lift the business restrictions on Kotak Mahindra Bank. This decision follows the Bank's successful implementation of remedial measures and compliance validation through an external audit. We will continue to work closely with the RBI to shortly resume digital onboarding of new customers and issuing fresh credit cards, " said spokesperson of Kotak Mahindra Bank.
