Kotak Bank News Today In Hindi

RBI Cracks Down on Kotak Mahindra Bank Amidst Growth Concerns

Subtle Decline in New Account Openings Prompt Regulatory Action

Bank Faces Restrictions on Customer Onboarding Via Online and Mobile Channels

New Delhi, India - 12th February, 2023 - The Reserve Bank of India (RBI) has imposed restrictions on Kotak Mahindra Bank's ability to open new customer accounts through online and mobile banking channels. This move comes amid concerns about the bank's overall growth trajectory and a recent slew of deposit account closures.

According to RBI sources, Kotak Mahindra Bank's customer acquisition practices have raised red flags, with a significant number of new accounts being closed within a short period after being opened. This behavior, coupled with muted growth in key financial indicators, prompted the regulator to intervene.

As per the restrictions, Kotak Mahindra Bank is now barred from opening new accounts through online and mobile channels. Existing customers will continue to have access to these channels for transactions and other services.

The RBI's action is expected to impact Kotak Mahindra Bank's plans to expand its digital banking reach. The bank had been aggressively promoting its online and mobile banking services to drive growth in recent years.

Kotak Mahindra Bank's stock price has been under pressure in recent weeks due to concerns over the bank's growth prospects. The bank's shares have declined by over 10% since the start of the year.