RBI asks Kotak Mahindra Bank to stop issuing fresh credit cards and onboarding new customers via online channels:The Reserve Bank of India has taken strict action against Kotak Mahindra Bank, one of the major private banks of the country. RBI has banned Kotak Mahindra Bank from issuing new credit cards and adding new customers through online and mobile banking channels. However, the Reserve Bank has also made it clear that Kotak Mahindra Bank will continue to provide its services to all existing customers including its credit card customers.
What is said in the RBI order
A statement issued by the Reserve Bank on Wednesday said, “Using its powers under Section 35A of the Banking Regulation Act 1949, the Reserve Bank of India orders Kotak Mahindra Bank Limited to (with immediate effect) i) stop adding new customers through online and mobile banking channels and (ii) stop issuing new credit cards. “However, the bank will continue to provide its services to its existing customers, including credit card customers.”
The Reserve Bank has further said in its order that it has to take this step against Kotak Mahindra Bank because many worrying things have come to light in the IT examination of RBI for the year 2022 and 2023 and the bank has fully addressed these concerns. And has consistently failed to address it in a timely manner.
In the official statement issued by the RBI (Reserve Bank of India), it has also been said that the corrective action plan given by it to Kotak Mahindra Bank for 2022 and 2023, has not been implemented to a great extent by the private bank. RBI says that the compliance information given to it by Kotak Mahindra Bank has been found to be inadequate, incorrect or not sustained.
(This news is being updated)
