RBI Ban Behind, Kotak Banks on New Affluent Programme to Grow Cards Portfolio

After a nine-month halt on digital onboarding and card issuance, Kotak Mahindra Bank launched an exclusive card strategy to win back lost ground.

What happens when a leading private bank is stopped mid-sprint? On April 24, 2024, the RBI didn’t just give a warning, it almost shut things down. It said Kotak Bank’s systems weren’t strong enough to protect customer data or manage tech risks. For the next nine months, the bank couldn’t sign up new digital customers or issue new credit cards.

According to RBI’s monthly data on credit card operations, Kotak’s active card base fell from 6 million to 5 million between April 2024 and January 2025. As of June 2025, the number stands even lower at 4.6 million. The impact threatened the bank’s position in India’s competitive credit card market.

But Kotak seems ready with a new plan.

Losses Measured in Numbers

The RBI lifted the ban on February 12, 2025, after an outside audit confirmed the fixes were solid. Global firm Grant Thornton did the checks, while Kotak teamed up with tech giants like Accenture, Infosys, Oracle, and Cisco to upgrade its systems. This was one of the toughest actions the RBI had taken on tech issues so far.

Even as card spends remained stable at ₹7,031 crore per month before the restrictions were lifted, the card count continued to shrink. By June 2025, monthly spends had slipped to ₹5,996 crore, as per the RBI’s June bulletin.

At the same time, Kotak saw its unsecured loan portfolio growth pause. The bank shifted focus temporarily to small business loans and mortgages. Technology costs also rose beyond the usual 10 to 12 percent of total expenditure, reflecting the high cost of regulatory compliance.

Here’s a closer look at how the ban affected operations:
 

Even though monthly spends held steady at first, the continued fall in card numbers signaled deeper damage. By June 2025, both usage and reach had slipped, showing that recovery would take more than time.

Read More – Kotak Royale Signature Credit Card – Everything You Need to Know

Solitaire: A Premium Play to Regain Market Share

In July 2025, Kotak launched an invite-only programme called Solitaire. The programme is aimed at high-income individuals and families with total relationships of ₹75 lakh (salaried) or ₹1 crore (self-employed). This measure includes deposits, investments, loans, insurance, and demat holdings, evaluated at a family level rather than just individual accounts.

The Solitaire card offers unlimited airport lounge access, zero foreign exchange markup, fuel waivers, and priority access to events. Pre-approved loans of up to ₹8 crore are also part of the package.

The bank says the Solitaire strategy is for attracting fewer but higher-spending customers. According to Kotak, less than one percent of its customer base qualifies as affluent, but this segment brings in more than 35 percent of its business.

A look at how Kotak’s affluent cardholders compare:
 

Kotak’s wealthiest clients may be few, but they drive a large share of its business. Solitaire is a move to double down on this segment and build a more profitable credit card base.

Focus Shifts to Card Spend, Not Just Card Count

During the ban, the bank saw a decline in total cards, but the spend per card remained high. Solitaire builds on that insight. Instead of focusing on increasing card numbers, Kotak is now targeting a rise in its share of spending among premium users.

This approach sets it apart from rivals like HDFC Bank or Axis Bank, who offer a broader set of products to all segments. Kotak’s focus, at least for now, is on high-value relationships.

Spending power of Solitaire vs regular cards:
 

The spending habits of Solitaire users show a sharp contrast with the average cardholder. By focusing on quality over quantity, Kotak hopes to boost returns without chasing mass volumes.

Also Read - RBI’s New Credit Card Rules: How It Affects Your EMI & Loan Eligibility

Technology Overhaul and Compliance Efforts

Fixing its technology became the bank’s biggest internal project in 2024. Post-RBI action, Kotak increased its tech spend to address serious risk flags. External partners helped overhaul backend systems, implement encryption standards, and improve digital onboarding.

This cost the bank nearly ₹450 crore in additional annual expenditure, based on estimates reported by Economic Times in May 2025. However, these changes were necessary to win back trust from both the regulator and its customers.

Summary of Kotak’s post-ban actions:
 

Upgrading systems and earning back regulatory trust came at a steep cost. But with new tech in place, Kotak is positioning itself for a more secure future.

Conclusion 

Kotak’s new focus on wealthy customers could help it stand out in India’s high-end credit card market. Its Solitaire card signals a clear shift in how the bank sees its growth path.

While the total number of cards is still bouncing back, Solitaire may not boost volumes quickly. But it’s designed to build stronger loyalty, lower customer exits, and earn more per user. This high-value approach is a growing trend among global banks and it’s the path Kotak seems ready to follow.

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