Summary: The Reserve Bank of India (RBI) has lifted its restrictions on Kotak Mahindra Bank, allowing it to resume issuing new credit cards and onboarding customers digitally. The ban was imposed in April 2024 due to IT system deficiencies identified in examinations conducted in 2022 and 2023. After addressing regulatory concerns, the bank is now set to restore these services. A spokesperson confirmed the bank’s commitment to working with the RBI and ensuring compliance. The move is expected to boost Kotak Mahindra Bank’s digital expansion and strengthen its market position.
The Reserve Bank of India (RBI) has revoked its restrictions on Kotak Mahindra Bank, enabling the private lender to resume issuing new credit cards and onboarding customers through online and mobile banking channels.
The restrictions were initially imposed in April 2024 after the RBI flagged concerns arising from IT examinations conducted in 2022 and 2023. Regulators cited repeated failures by the bank to comprehensively and promptly address the identified deficiencies in its IT systems.
Following months of compliance efforts and engagement with the central bank, Kotak Mahindra Bank has now received the green light to restore these critical services. In response to the RBI’s decision, a spokesperson for Kotak Mahindra Bank stated, “We will continue to work closely with the RBI to shortly resume digital onboarding of new customers and issuing fresh credit cards.”
The revocation of the ban is expected to bolster the bank’s digital growth strategy, allowing it to expand its customer base and regain lost momentum in the credit card market. Kotak Mahindra Bank is likely to implement further technological enhancements to ensure continued compliance with regulatory standards.
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