On Wednesday, Kotak Mahindra Bank received a directive from the Reserve Bank of India to cease issuing new credit cards immediately. In addition, it is now prohibited to add new clients via mobile and internet banking platforms.
RBI gave the bank an explanation for this restriction, stating that it had previously warned the bank about the lack of appropriate IT infrastructure between 2022 and 2023, but the bank had consistently failed to address these issues.
The RBI has taken this action against Kotak Mahindra Bank by using its authority under Section 35A of the Banking Regulation Act 1949. Those who now use the bank will still be able to use all of its services, nevertheless.
Over 49 lakh individuals possess a Kotak credit card.
On its website, Kotak Mahindra Bank claims to have 4.12 crore customers and over 1,780 branches nationwide.
The bank's credit cards are being used by over 49 lakh customers. Among its debit cards, around 28 lakh are now in use.
The bank employs around one lakh people. There are deposits totaling around Rs 3.61 lakh crore in the bank.
