India Reserve Bank of India canceled the restriction entered by Kotak Mahindra 12 February, allowing the bank to start new customers through their online channels and issue new credit cards. The restriction was originally imposed by RBI 24 April 2024 pursuant to Section 35a of the Act on the Banking Regulation of 1949.
RBI said: “The bank subsequently initiated remedial measures to address the interests of supervision and submitted compliance with reserves. On the submission and remedial measures taken by the bank, the reserve of the bank, it decided to cancel the restriction to Kotak Mahindra Bank Limited. ”
The central bank imposed on the bank a restriction after the IT test by a reserve bank in 2022 and 2023, as well as the constant failure of the bank effectively and immediately does not deal with these concerns.
In its order 24.
z (i) aboard new customers through their channels online and mobile banking and
ii) issuing new credit cards. He added that the bank will continue to provide services to its existing customers, including credit card customers.
After restrictions, the bank introduced measures in response to concerns made on specific aspects of its operations, especially IT infrastructure.
Kotak Mahindra Bank immediately dealt with RBI concerns by implementing remedial measures and submitting the required compliance. In addition, the bank performed an external audit approved by the central bank to verify compliance with the regulations.
“We welcome the decision of India Reserve Bank of India (RBI) to cancel business restrictions on Kotak Mahindra. This decision is governed by a successful implementation of corrective measures and verification of compliance with the regulations through an external audit. We will continue to work closely with RBI to briefly restore the digital deck of new customers and issue fresh credit cards, ”said Kotak spokesman Mahindra Bank.
Kotak Mahindra Bank shares closed at RS 1 943.30, which is 1.35%.
