RBI Lifts Restrictions on Kotak Mahindra Bank: Customers Can Now Open Accounts and Apply for Credit Cards
On February 12, 2025, the Reserve Bank of India (RBI) announced that it has removed the restrictions previously placed on Kotak Mahindra Bank. This means customers can now open new Kotak Mahindra 811 accounts online and apply for new credit cards from the bank.
The RBI stated that Kotak Mahindra Bank has taken corrective actions to address concerns raised earlier. The bank also conducted an external audit with RBI’s approval to ensure compliance. After reviewing the bank’s efforts, the RBI decided to lift the restrictions immediately.
Why Were Restrictions Imposed?
On April 24, 2024, the RBI had imposed restrictions on Kotak Mahindra Bank due to serious IT-related issues. These included weaknesses in managing IT systems, data security, and preventing service disruptions. The bank also faced frequent outages, with one major service failure occurring on April 15, 2024, which caused inconvenience to customers.
Due to these ongoing problems, the RBI restricted the bank from onboarding new customers via its digital platforms and from issuing new credit cards.
Bank’s Response
A spokesperson for Kotak Mahindra Bank welcomed the RBI’s decision, stating:
“We appreciate the RBI’s decision to lift the restrictions. Our team has worked hard to implement corrective measures and ensure compliance through an external audit. We look forward to resuming digital onboarding of new customers and issuing credit cards soon.”
With this decision, Kotak Mahindra Bank is now back to full operations, allowing customers to access all digital banking services without restrictions.
