The Reserve Bank of India (RBI) has lifted all the restrictions imposed on Kotak Mahindra Bank. Now the bank will be able to add new customers again and issue new credit cards. In April 2024, RBI had imposed some strict restrictions due to disturbances in the IT security and risk management of the bank. But now the bank has made all the necessary improvements, after which this ban has been lifted.
Why were restrictions imposed on Kotak Mahindra Bank?
In April 2024, RBI imposed restrictions on Kotak Mahindra Bank under Section 35A of the Banking Regulation Act, 1949. The main reasons behind this were:
Serious flaws in the IT Risk Management and Cyber Security of the bank.
Many concerns were raised in the IT audit reports of 2022 and 2023.
This action was taken on the bank due to delay in system upgrade and weak digital infrastructure.
Due to persistent problems, RBI had barred the bank from adding new customers and issuing new credit cards.
What changes have happened now?
RBI reviewed improvements in Kotak Mahindra Bank’s digital security and IT infrastructure. The bank upgraded its digital services, which lifted the ban. Now the bank can again:
✅ Can add new customers.
✅ Can issue new credit cards.
✅ Can run digital banking services smoothly.
Quarterly results of Kotak Mahindra Bank
Kotak Mahindra Bank’s December 2024 quarter results were also excellent. The bank’s net profit increased by 10.22% to ₹4,701 crore.
The bank’s total income stood at Rs 16,050 crore, as against Rs 14,096 crore in the same period last year.
HDFC Bank was also banned
RBI had imposed a similar ban on HDFC Bank in December 2020. Due to persistent technical glitches, HDFC was barred from issuing new credit cards and launching digital initiatives. But this ban was lifted in March 2022.
What will change for Kotak Mahindra Bank Customers?
Now the bank’s customers can expect a better digital experience and secure banking.
New Credit Cards: Now the bank will be able to offer new credit cards.
Smooth Digital Banking: Online banking and mobile app services will improve.
Secure Transactions: The bank’s IT infrastructure will now be more secure.
Final Thoughts
This is a big relief for Kotak Mahindra Bank, as now it will be able to further strengthen its digital banking. This is positive news for customers as now they can enjoy a safer and better banking experience than before.
What is your opinion? Have you felt the improvement in the digital services of Kotak Mahindra Bank? Do tell in the comments!