RBI Lifts Restrictions on Kotak Mahindra Bank, Resumes Digital Onboarding and Credit Card Issuance

The Reserve Bank of India (RBI) has lifted the nine-month-long restrictions on Kotak Mahindra Bank, enabling the lender to resume onboarding new customers digitally and issuing fresh credit cards. These restrictions, imposed in April 2024 due to concerns over IT infrastructure and compliance issues, were removed after the bank implemented remedial measures and underwent an external audit approved by the RBI.

Kotak Mahindra Bank welcomed the decision and announced plans to work closely with the RBI to ensure smooth resumption of services. Shares of the bank rose 1.4% following the announcement.

Source: Economic Times