As we foresaw, the Reserve Bank of India (RBI) has banned Kotak Mahindra Bank’s 811 digital accounts, restricting the opening of new accounts and issuing new credit cards. Our research identifies three primary reasons behind the RBI’s drastic action:

1. Over-subscription of free account services, which undermines banking facilities for new customers already facing restrictions, such as minimum transaction requirements or maximum deposit limits, in the account opening process.
   
   
2. Neglect of existing customers, who despite paying monthly maintenance charges (AMC), face long queues at branch offices, leading to delays and ensemble problems.
   
   
3. The offering of unwanted and unreasonable services to customers, which is challenging to manage due to the prevailing lack of financial education in India.

Our prediction preceding the RBI’s announcement undermines the significance of addressing these issues to ensure a stable and customer-centric banking system.”