MUMBAI: The Reserve Bank of India (RBI) has lifted the nine-month-old curbs on Kotak Mahindra Bank, permitting the private sector lender to onboard new customers through its online and mobile banking platforms and issue fresh credit cards.
In April 2024, the RBI had directed Kotak Mahindra Bank to stop acquiring new customers via its digital channels and halt the issuance of new credit cards.
The restrictions followed supervisory concerns identified during an IT examination covering the years 2022 and 2023, related to deficiencies in key areas such as IT inventory management, user access controls, vendor risk management, data security, and business continuity planning.
Remedial action
Kotak Mahindra Bank took immediate remedial action, submitting compliance reports and commissioning an external audit to validate its corrective measures.
After reviewing the submissions and corrective steps, the RBI decided to remove the restrictions. In a statement, the RBI conveyed that the bank had successfully addressed the earlier concerns, leading to the lifting of the restrictions, which had impacted its growth and customer onboarding processes since last year.
