India's central bank on Wednesday lifted its 10-month-long restriction on Kotak Mahindra Bank that had barred the lender from onboarding new clients digitally and from issuing credit cards due to gaps in its IT infrastructure.

Kotak Mahindra Bank's shares surged 2.5% after the RBI lifted restrictions on new credit cards and online account openings. Brokerages reacted positively, raising target prices and highlighting the bank's potential for growth in the high return on equity credit card business and digital customer acquisition.

RBI had asked place restrictions in April last year after finding deficiencies and non-compliances in Kotak Mahindra Bank’s IT inventory management and data security, among other issues

The Reserve Bank of India said on Wednesday that it had lifted its 10-month-old order barring Kotak Mahindra Bank from onboarding new clients digitally and issuing fresh credit cards due to gaps in its IT infrastructure.

Good news for customers who wish to apply for a new Kotak Mahindra Bank credit card or open a bank account with them through online or mobile banking channel. “The Reserve Bank

Kotak Bank received positive response from brokerages after RBI removed curbs on its digital banking business. Morgan Stanley reiterating its "overweight" rating on the counter and shared highest target price of Rs 2,

India's central bank on Wednesday lifted restrictions on Kotak Mahindra Bank that had barred the lender from taking on new customers via its online and mobile banking channels and from issuing new credit cards.

The Reserve Bank has lifted all restrictions it placed on Kotak Mahindra Bank. On April 24 last year, the RBI imposed certain business restrictions on the private lender. The bank was directed to cease and desist from onboarding new customers through its online and mobile banking channels,