RBI lifts restrictions on Kotak Mahindra Bank from issuing credit cards, adding customers online

ANI February 12, 2025 261 views

The Reserve Bank of India has officially lifted business restrictions previously placed on Kotak Mahindra Bank after a comprehensive review. The bank was previously prohibited from onboarding new customers and issuing credit cards due to regulatory concerns. Kotak Mahindra Bank undertook remedial measures and commissioned an external audit to address the RBI's supervisory requirements. With these compliance steps completed, the bank can now resume its full range of online banking and credit card services.

"The bank initiated remedial measures to address supervisory concerns" - RBI Communication
New Delhi, February 12: The Reserve Bank has lifted all restrictions it placed on Kotak Mahindra Bank. On April 24 last year, the RBI imposed certain business restrictions on the private lender.

Key Points

1

RBI lifted restrictions imposed on Kotak Mahindra Bank in April 2023

2

Bank completed mandatory compliance and external audit

3

Online banking and credit card services can now resume

4

Regulatory oversight ensured proper banking practices

The bank was directed to cease and desist from onboarding 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 restrictions.

RBI said a detailed communication has been issued to the bank in this regard.

Tags:
RBI Kotak Mahindra Bank Banking Regulations Credit Cards Financial Compliance
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