MONEY
RBI lifts curbs on Kotak Mahidra Bank, lets it to issue new credit cards
- IBJ Bureau
- Feb 13, 2025
After more than nine months of imposing severe business restrictions on Kotak Mahindra Bank because of concerns on the technology front, the Reserve Bank of India (RBI) on Wednesday announced lifting of the “cease and desist” order.
The RBI said that it was “satisfied” with the remedial measures undertaken by the private sector lender, and allowed it to issue new credit cards and onboard new customers through the online and mobile banking channels.
According to reports, Kotak had undertaken a third-party IT audit from an external consultant and undertaken various other measures.
Under former RBI Governor Shaktikanta Das, the RBI had resorted to imposing business restrictions on a slew of errant entities as a supervisory measure, including imposing nearly 15-month restrictions on the largest private sector lender HDFC Bank till March 2022.
Mr Das had explained that months of correspondence, warnings and meetings precede such an order and added that they were taken as a corrective step.
At his maiden policy review recently, his successor Sanjay Malhotra had hinted at a softer approach on regulatory aspects considered as detrimental by banks and had made it clear that he would not like to use it more often.
He had also said the cost of regulatory moves needs to be taken into consideration before any action.
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