Major RBI Action: Kotak Mahindra Bank Restricted from Adding New Customers and Issuing Credit Cards

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RBI has initiated an action on Kotak Mahindra Bank , RBI has asked the bank to stop the onboarding of new customers through its online and Mobile Banking Channels with immediate effect which means that the bank will not be able to have any new customers or Merchants onto any of its Mobile Banking channels the second action that RBI has taken on kotak Mahindra bank is that it has asked the bank to stop the issuance of fresh credit cards now both the steps are extremely significant because this action on a major banking entity comes after RBI had already taken action on other lenders like iffl Finance JM financial and also on PAYTM payments Bank.

Customers wearing protective masks approach a Kotak Mahindra Bank Ltd. branch on a near-empty street in Mumbai, India, on Monday, May 4, 2020. India’s central bank Governor Shaktikanta Das and the chief executive officers of the nation’s banks have discussed ways to ensure credit flow to businesses once the world’s toughest stay-at-home order ends. Photographer: Dhiraj Singh/Bloomberg via Getty Images

Just about 1 month back and another action coming on Kotak Mahindra bank is a significant step now from what we know the RBI has clarified that even though these two steps of action have been taken that is the stopping of new customers on its online and Mobile Banking channels and the issuance of credit cards the RBI has said that the bank can however continue to provide services to its existing customers which means that the customers who already have credit cards or who are already the customers of the bank will be able to use Kotak Mahindra bank’s Services it is just the issuance of the fresh credit cards which will be stopped.