The Reserve Bank of India (RBI) has lifted supervisory restrictions placed on Kotak Mahindra Bank Limited, allowing the lender to resume new customer onboarding via digital channels and fresh credit card issuances. The development is expected to put Kotak Mahindra Bank shares in focus in tomorrow’s trading session.
RBI had imposed these restrictions on April 24, 2024, under Section 35A of the Banking Regulation Act, 1949, citing supervisory concerns. The bank was directed to cease:
- Onboarding of new customers through online and mobile banking channels.
- Issuance of fresh credit cards.
Since then, Kotak Mahindra Bank initiated remedial measures, addressing RBI’s concerns and submitting compliance reports. The bank also conducted an external audit, with RBI’s prior approval, to validate these compliance measures.
After reviewing the bank’s submissions and satisfactory implementation of corrective measures, RBI has now decided to lift these restrictions. A detailed communication regarding the decision has been sent to Kotak Mahindra Bank.
With the restrictions now removed, investor sentiment is expected to improve, and Kotak Mahindra Bank’s stock could see positive movement in the upcoming trading session.
