The Reserve Bank of India (RBI) has lifted the business restrictions imposed on Kotak Mahindra Bank Limited. These restrictions, which were imposed on April 24, 2024, barred the bank from onboarding new customers through its online and mobile banking channels and issuing fresh credit cards.
The RBI’s decision to lift these restrictions comes after Kotak Mahindra Bank implemented remedial measures to address the supervisory concerns raised by the central bank. The bank also commissioned an external audit, approved by the RBI, to validate the compliance.
With the restrictions lifted, Kotak Mahindra Bank can now resume its digital customer acquisition and credit card issuance. This move is expected to positively impact the bank’s net interest margin (NIM) and fee income growth.
