Kotak Mahindra Bank News Update: RBI has stopped Kotak Mahindra Bank from issuing new credit cards with immediate effect. What effect will this action of the Reserve Bank have on the old customers of the bank?
RBI action against Kotak Mahindra Bank: Now strict action has been taken by the Reserve Bank against the private sector Kotak Mahindra Bank (kotak mahindra bank customer). RBI has barred Kotak Mahindra Bank from issuing new credit cards with immediate effect. Now the bank will not be able to issue any credit card to any new customer. Along with this, from now on he cannot add any new customer through online and mobile banking channels.
Why has this ban been imposed?
The Reserve Bank of India has taken this action under Section 35A of the Banking Regulation Act 1949. RBI has said that due to lack of updation in the IT infrastructure of the bank between the years 2022 and 2023, the bank was facing problems for a long time. RBI had already warned about this, but the bank was not removing its shortcomings, after which RBI has now taken this action.
According to the regulator, the bank’s servers should not be disrupted in the future and customers should not face serious problems. Keeping this in view, RBI has taken this step. According to the Reserve Bank, flaws related to the IT sector not only cause problems to the customers, but it also spoils the digital banking and financial ecosystem.
What will be the impact on old customers?
At present, a large number of customers in the country are taking advantage of the services of Kotak Mahindra Bank, but now the question arises that what effect will this action of RBI have on the old customers? However, those who are already customers of the bank will continue to get all the services as before. On behalf of the Central Bank, it has been said that the bank will continue to provide the same facilities to its existing credit card users as before.
Country’s fourth largest bank
Kotak Mahindra Bank is the fourth largest public sector bank in the country in terms of market cap. The market cap of Kotak Mahindra Bank is Rs 3.66 lakh crore. At the same time, at present the name of HDFC bank is at number one. The market cap of HDFC is Rs 11.48 lakh crore. The name of ICICI Bank is at second place and its market cap is Rs 7.69 lakh crore. At the same time, the name of public sector bank SBI is at number three. Its market cap is Rs 6.89 lakh crore.
There are 4.12 crore customers in the bank
At present, Kotak Mahindra Bank has 4.12 crore customers and out of these, more than 49 lakh customers have active credit cards. At the same time, more than 28 lakh customers have active debit cards.
Impact will be visible on shares today
The impact of RBI’s decision will be visible on Kotak Mahindra Bank shares in the market today. On Wednesday, the company’s stock closed at the level of 1,842.95 with a rise of 1.65 percent. In the last 6 months, the bank’s shares have given only 6.65 percent return to the investors. At the same time, in the last one month, investors have got a return of 5.09 percent.
