India, April 24 -- The Reserve Bank of India (RBI) has barred Kotak Mahindra Bank from onboarding new customers through its online and mobile banking channels.

In a statement issued on Wednesday (April 24), the central bank said, "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 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."

However, the RBI said that the bank will continue to provide services to its existing customers, including its credit card customers.

The central bank said that it took the steps based on conce...