The Reserve Bank of India on Wednesday directed Kotak Mahindra Bank to stop issuing new credit cards with immediate effect. Along with this, a ban has been imposed on adding new customers through online and mobile banking channels. Explaining the reason for imposing this restriction on the bank, RBI said that it had expressed its concern to the bank about not having adequate IT infrastructure between 2022 and 2023, but the bank continuously failed to remove these shortcomings. Using its power under Section 35A of the Banking Regulation Act 1949, RBI has taken this action against Kotak Mahindra Bank. However, those who are already customers of the bank will continue to get all the services as before. More than 49 lakh people have Kotak’s credit card. RBI said three more big things…
