India, April 24 -- The Reserve Bank of India on Wednesday (April 24, 2024) barred private lender Kotak Mahindra Bank from onboarding new customers online and issuing new credit cards with immediate effect.

The Indian central bank said in a press release: The Reserve Bank of India has today, in exercise of its powers under Section 35A of the Banking Regulation Act, 1949, directed Kotak Mahindra Bank Limited (hereinafter referred to as the bank) to cease and desist, with immediate effect, from (i) onboarding of new customers through its online and mobile banking channels and (ii) issuing fresh credit cards.

The bank shall, however, continue to provide services to its existing customers, including its credit card customers, RBI said.

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