Kotak Mahindra Bank Regains RBI Approval for New Customer Onboarding

The Reserve Bank of India has lifted restrictions on Kotak Mahindra Bank, allowing it to onboard new customers via online and mobile channels and issue new credit cards. These restrictions were in place due to IT-related deficiencies. The bank has now addressed these issues, satisfying RBI's compliance requirements.

The Reserve Bank of India on Wednesday removed restrictions on Kotak Mahindra Bank, allowing the lender to onboard new customers through its digital platforms.

The private sector bank can also resume issuing new credit cards, following a halt triggered by the RBI in April 2024 due to concerns over IT compliance.

Kotak Mahindra satisfied the central bank by addressing supervisory issues and undergoing an external audit, ultimately leading to the restoration of its digital operations.

(With inputs from agencies.)