The total number of outstanding credit cards for the bank decreased to more than 50 lakhs in December.
Private sector veteran Kotak Mahindra Bank has got a big relief from the Reserve Bank of India (RBI). The RBI has lifted a serious commercial ban on Kotak Mahindra Bank for more than nine months due to technology concerns. According to PTI news, the Reserve Bank of India on Wednesday announced the removal of the order ‘stop and stop’. This relief received by the bank will help a lot.
Bank will be able to issue fresh credit cards
According to the news, after the banned ban by RBI, Kotak Mahindra Bank will also be able to issue fresh credit cards through online and mobile banking channels and has allowed to add new customers. The RBI said it is satisfied with the corrective measures taken by the private sector Kotak Mahindra Bank. According to the report, Kotak had a third -party IT audit from an external advisor, and took several other measures.
There are many procedures before banning
Under former Governor Shaktikanta Das, the Reserve Bank resorted to a commercial ban on several wrong institutions as a supervisory measure, including a ban on the private sector’s largest private sector lender HDFC Bank by March 2022. Das had explained that before such orders, there are correspondence, warnings and meetings for months. In his first policy review last week, his successor Sanjay Malhotra indicated a soft stance on the regulatory aspects considered harmful by banks, and clarified that they would not want to use it more often.
Total number of outstanding credit cards for bank
The central bank said that after satisfying itself on the basis of submissions and therapeutic measures presented by the bank, the Reserve Bank has decided to lift the above restrictions imposed on KMB. We will continue to work with RBI to resume digital onboarding of new customers and issue new credit cards. The total number of outstanding credit cards for Kotak Mahindra Bank decreased to more than 50 lakhs in December. This was 59 lakhs in March 2024, while the share of unsafe loans came down to 10 percent after the move.
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