Kotak Mahindra Bank is back in the credit card space after a 10-month pause. The Reserve Bank of India (RBI) has lifted the restrictions, allowing the bank to issue new credit cards and onboard customers digitally once again.
RBI Lifts Ban on Kotak Mahindra Bank
The bank faced regulatory restrictions due to compliance issues, preventing it from issuing new credit cards or onboarding customers digitally. Now, with necessary corrective measures in place, RBI has removed the ban.
What Led to the Ban?
The RBI imposed restrictions due to supervisory concerns. Kotak Mahindra Bank addressed these by implementing remedial measures and commissioning an external audit with RBI’s approval to validate compliance.
Official RBI Statement
The RBI acknowledged the bank’s corrective actions and compliance efforts. Satisfied with the improvements, it has now permitted Kotak Mahindra Bank to resume normal operations in digital customer onboarding and credit card issuance.
Impact on the Credit Card Market
This decision is significant for both Kotak Mahindra Bank and credit card users. Popular cards like the Myntra Kotak Credit Card will be available again, adding competition to the Indian credit card market.
The revival of Kotak Mahindra Bank’s credit card operations marks a new phase for the bank.