After the Reserve Bank of India limited several of its digital services and the bank revealed less-than-expected fourth-quarter of the financial year performance, Kotak Mahindra Bank is finding difficult times. The 10% drop in the bank’s shares set investors on frenzy. Many investors have pulled their money out of this abrupt collapse, which raises questions about the bank’s short-term viability. The circumstances has put pressure on the bank’s leadership to act fast in order to rebuild investor confidence. This is a thorough analysis of the causes of this crisis and possible effects on the Indian banking system.