Halt digital launches, new credit card sourcing: RBI to HDFC Bank

HDFC Bank outage: The RBI also noted the recent outages in the HDFC Bank's internet banking and payment system on November 21, 2020 owing to a power failure in the primary data centre.

A man walks towards an HDFC Bank Ltd. branch in Mumbai, India, on Saturday, April 21, 2018. (Photographer: Dhiraj Singh/Bloomberg)

The RBI has asked private lender HDFC Bank to temporarily stop all launches of its digital business generating activities under ‘Digital 2.0’ programme and sourcing of new credit card customers.

In a stock exchange filing on December 2, HDFC Bank said that the Reserve Bank of India (RBI) issued an order to it in the wake of certain incidents of outages in the internet banking, mobile banking and payment utilities of the bank over the past two years.

Also Read | Explained: Why RBI has ask HDFC Bank to stop digital launches, new credit card sourcing

The RBI advised the bank to temporarily stop all launches of the digital business generating activities planned under its programme Digital 2.0 (to be launched) and other proposed business generating IT applications and sourcing of new credit card customers. The measures will be considered for lifting upon satisfactory compliance with the observations as identified by RBI.

“We will comply with the regulator’s requirements. We take this opportunity to assure our existing customers that there is no reason to worry,” said HDFC Bank MD and CEO Sashidhar Jagdishan.

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