Key Points
The Reserve Bank of India (RBI) directed Kotak Mahindra Bank to halt new credit card issuance and customer onboarding via online and mobile banking due to identified operational deficiencies..
This move, aimed at safeguarding customer interests, is part of RBI's regulatory measures concerning compliance and risk management issues at the bank.AgenciesKotak.
The Reserve Bank of India (RBI) on Wednesday asked Kotak Mahindra Bank to cease and desist from issuing new credit cards, onboarding new customers through online and mobile banking channel with immediate effect after it found "serious deficiencies and non-compliances" in certain areas of its operations...
"The Reserve Bank of India has today, in exercise of its powers under Section 35A of the Banking Regulation Act, 1949, directed Kotak Mahindra Bank Limited (hereinafter referred to as the bank) to cease and desist, with immediate effect, from (i) onboarding of new customers through its online and mobile banking channels and (ii) issuing fresh credit cards..
In light of these findings, the RBI directed Kotak Mahindra Bank to halt the issuance of fresh credit cards and the onboarding of new customers via mobile banking...
