RBI stops Kotak Bank to onboard fresh online customers

(20 second reading) The Reserve Bank of India (RBI) on Wednesday asked Kotak Mahindra Bank to cease issuing new credit cards and onboard new customers through its online and mobile banking channel. This directive comes as part of regulatory actions taken by the RBI in response to concerns regarding compliance and risk management at the bank.
The RBI, however, directed the bank to continue providing services to its existing customers, including its credit card customers.
RBI has taken decisive action against the bank following significant concerns arising from the central bank’s IT examination for two consecutive years i.e. 2022 and 2023.