Mumbai: The Reserve Bank of India (RBI) on Wednesday lifted the restrictions on Kotak Mahindra Bank, allowing it to issue new credit cards and onboard new customers through its website and mobile app, nearly ten months after an embargo was imposed on it. “Having satisfied itself based on the submissions, and remedial measures undertaken by the bank, the Reserve Bank, has decided to lift the afore-mentioned restrictions placed on Kotak Mahindra Bank Limited,” said RBI in its press release.
In another release, the RBI approved small finance banks (SFBs) to offer credit lines on the Unified Payments Interface (UPI), in accordance with the regulator’s announcement made during the December 2024 monetary policy committee meeting.
Currently, savings accounts, overdraft accounts, prepaid wallets and credit cards can be linked to UPI. As announced, the scope of UPI is now being expanded by inclusion of credit lines as a funding account, said the RBI.
“Under this facility, payments through a pre-sanctioned credit line issued by a Scheduled Commercial Bank to individuals, with prior consent of the individual customer, are enabled for transactions using the UPI System,” said the RBI.