RBI Orders Kotak Mahindra Bank to Cease Onboarding New Customers, Stop Issuing Fresh Credit Cards

Kotak Mahindra Bank has received an order from the Reserve Bank of India (RBI) to cease and desist from onboarding new customers through online and mobile banking channels and issuing fresh credit cards. The RBI's action was based on deficiencies observed during an IT examination of the bank. The bank has taken steps to strengthen its IT systems and intends to work with RBI to resolve the issues. Existing customers will have uninterrupted services, including credit card, mobile, and net banking. Branches will continue to onboard new customers for all other banking services. The bank believes that the directions will not significantly impact its overall business.