"The digital acquisition of customers will be adversely impacted but the reputational impact is surprising since Kotak is considered to be a conservative bank with good processes and systems in place," said Kaitav Shah, banking analyst, Anand Rathi Brokerage.
In the past five years, the central bank has imposed restrictions on Paytm Payments Bank, Bank of Baroda, Mastercard and American Express Banking, among others.
The Mumbai-based Infina Finance donated electoral bonds worth Rs 60 crore to the Bharatiya Janata Party (BJP). The NBFC firm purchased these bonds in the denomination of Rs 1 crore in 2019, 2020 and 2021, according to the data given by the State Bank of India (SBI) to the Election Commission. The data was made public last month.
Finance Minister Nirmala Sitharaman emphasizes the need for strict compliance to regulations in the fintech sector. She assures that the sector is a key priority and steps have been taken to nurture the ecosystem. Read more.