The Indian Reserve Bank raised the restrictions imposed on the Kotak Mahindra Bank on February 12, allowing the bank to develop new customers through its online channels and issuing new credit cards. Restrictions were originally imposed by RBI on April 24, 2024, according to Article 35A of the Banking Organization Law, 1949.
“After that, the bank began treatment measures to address supervisory concerns and provide compliance with the reserve bank. The bank also cost an external review, with the prior approval of the RBI to verify the validity of compliance. On the submission, the treatment measures taken by the bank, the reserve bank, decided, the bank, the reserve bank, Raise the restrictions on Kotak Mahindra Bank Ltd.
The central bank imposed restrictions on the bank after the IT exam by the Reserve Bank in 2022 and 2023, in addition to the bank’s continuous failure to address these concerns effectively and quickly.
On April 24, the central bank had directed the lender “stop and stop, with an immediate effect,
From (1) on board new customers through its online banking channels and mobile phone
(2) Issuing new credit cards. He added that the bank will continue to provide services to its current customers, including credit card agents.
After the restrictions, the bank carried out the measures in response to concerns about specific aspects of its operations, especially the information technology infrastructure.
Kotak Mahindra immediately took RBI concerns by implementing the treatment procedures and providing the required compliance. In addition, the bank conducted an external audit, accredited by the central bank, to verify compliance with regulations.
“We welcome the decision of the Reserve Bank in India (RBI) to raise the restrictions of work on the Kotak Mahindra Bank. This decision follows the success of the successful bank for therapeutic measures and verification of the validity of compliance through external audit. To resume this soon on new customers and issuing new credit cards. “
Kotak Mahindra Bank shares closed at 1943.30 rupees, an increase of 1.35 %.
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