Ten months after the Reserve Bank of India (RBI) imposed business restrictions on Kotak Mahindra Bank, the regulator on Wednesday revoked its decision after being satisfied with the remedial actions taken by the lender.
In its response to the RBI decision, the lender said it would continue to work in tandem with the regulator to shortly resume taking on new customers digitally and issuing fresh credit cards.
With this, the “cease and desist” order for all banks and non-banking financial companies stands removed, except that for Paytm Payments Bank.
Following the embargo, the lender initiated remedial measures, submitted compliances, and commissioned an external audit to validate the compliances.“…the bank initiated remedial measures to address the supervisory concerns and submitted compliances to the Reserve Bank. The bank also commissioned an external audit, with prior approval of RBI, to validate the compliances,” the RBI said in a statement on Wednesday.
“Now, having satisfied itself based on the submissions, and remedial measures undertaken by the bank, the Reserve Bank has decided to lift the restrictions placed on Kotak Mahindra Bank,” the RBI statement added.
Kotak Mahindra Bank said: “We welcome the Reserve Bank of India’s decision to lift the business restrictions on Kotak Mahindra Bank. This decision follows the bank’s successful implementation of remedial measures and compliance validation through an external audit.”
