RBI removes curbs on Kotak Mahindra Bank that it had place in April 2024

On February 12, the Indian Reserve Bank raised the restrictions on Kotak Mahindra Bank, which allowing the bank to new customers through its online channels and issued new credit cards. The restrictions were originally used by RBI on April 24, 2024, under the Act of Bank Regulation, 1949.

RBI said: The report on the events taken by the bank was decided to increase the restrictions on Kotak Mahindra Bank. ”

The Central Bank has established restrictions at the Bank after its expertise in 2022 and 2023, as well as to resolve the bank’s continuous failure effective and immediately.

In his April 24, the Central Bank, the Central Bank directed the lender to “terminate and stopped, with direct influence
(i) by new customers through its online and mobile bank channels and

(ii) Issuing of fresh credit cards. It added that the bank, however, continues to provide services to its existing customers, including its credit card customers.

After the restrictions, the bank carried out measures in response to special aspects of its actions, particularly IT infrastructure.

Kotak Kahindra Bank immediately touched upon RBI’s concerns, implementing rehabilitation actions and submitted the required patience. In addition, the Bank has conducted an external audit that has been approved by the Central Bank to verify compliance with regulations.

“We welcome the decision to the Indian (RBI) reserve, the decision to increase the restrictions on the business restrictions on Kotak Mahindra Bank. This decision follows the successful implementation of the bank’s rehabilitation measures and the approval of compliance through external audit. We will continue to work closely with RBI, providing new customers digital, and providing fresh credit cards, “said Kotak Mahindra Bank spokesman.

The shares of Kotak Mahindra Bank were closed at Rs 1,943.30, increased by 1.35%.