Reserve Bk lifts curbs on Kotak Mahindra Bank

FPJ News Service mumbai

The Reserve Bank of India (RBI) on Wednesday lifted the restrictions placed on Kotak Mahindra Bank Limited.

RBI had imposed business restrictions on the bank on April 24, 2024 by directing the bank to cease and desist from onboarding of new customers through its online and mobile banking channels, and issuing of fresh credit cards.  Subsequently, the bank initiated remedial measures to address the supervisory concerns and submitted compliances to banking regulator. 

The bank also commissioned an external audit, with prior approval of RBI, to validate the compliances. "Now, having satisfied itself based on the submissions, and remedial measures undertaken by the bank, the Reserve Bank, has decided to lift the afore-mentioned restrictions placed on Kotak Mahindra Bank Limited," the RBI said.

While announcing the supervisory action against Kotak Mahindra Bank under Section 35A of the Banking Regulation Act in April last year, the RBI had said the actions were necessitated based on significant concerns arising out of it's IT examination of the bank for the years 2022 and 2023 and the continued failure on part of the bank to address these concerns in a comprehensive and timely manner.