WHEN RBI WILL LIFT BAN ON KOTAK MAHINDRA BANK?

DEAR READERS, AS YOU ALL KNOWS THAT RBI HAS PUT RESTRICTIONS ON KOTAK MAHINDRA BANK FOR ISSUING NEW CREDIT CARD AND IT'S BUSINESS, AND DUE TO THAT KOTAK MAHINDRA BANK'S SHARE FACED DRASTIC FALL TODAY (>10%).

NOW THE QUESTION ARISES HERE IS " WHEN RBI WILL LIFT RESTRICTIONS ON KOTAK MAHINDRA BANK?"

SO THE ANSWER IS NOT HAVING A FIXED TIME-LINE.

LET US UNDERSTAND THE ISSUE WITH THE EXAMPLE OF HDFC BANK.

SAME RESTRICTIONS WAS FORCED ON HDFC BANK IN THE YEAR 2020 ITSELF.

AT THAT TIME HDFC BANK WAS RESTRCTED TO LAUNCH NEW DIGITAL SERVICES AND NEW CREDIT CARD BUSINESS.

THE REASON WAS TECHINCAL ISSUES IN THIER ONLINE SYSTEM, AND IT WAS CLEARLY INSTRUCTED TO THEM , RESTRICTIONS WILL BE IMPOSED TILL HDFC BANK DOES NOT IMPROVE THE TECNICAL FAULTS AND CLEAR IT WITH AUDIT.

AFTER THAT , WITH A WAITING PERIOD OF ABOUT ONE YEAR i.e IN AUGUST 2021, RBI ALLOWED HDFC BANK TO ISSUE NEW CREDIT CARDS.

AND IN MARCH 2022 , RESTRICTIONS WAS REMOVED COMPLETELY FROM HDFC BANK.

SO IT TOOK ABOUT 1 &1/2 YEAR TO REMOVE RESTRICTIONS FROM INDIA'S LARGEST PRIVATE SECTOR LENDER.

NOW THE KOTAK MAHINDRA BANK FACED SAME ACTION FROM RBI & SURPRISINGLY FOR SAME TECHNICAL FAULTS.

SO THE TIME LINE FOR REMOVAL OF RESTRICTIONS DEPENDS ON THE KOTAK MAHINDRA BANK ITSELF NOW.

BANK ASSURED RBI THAT THEY WILL AUDIT THEIR SYSTEM AND WILL REMOVE DRAWBACKS AS SOON AS POSSIBLE.

HOPE YOU FIND SOME CLUE HERE FOR YOUR QUESTION, IF YOU LIKE THE POST THEN SHARE THIS POST IN YOUR INVESTOR CIRCLE TOO.

THANKYOU

FROM

GAURAV