Updated: December 3, 2020 2:31:12 pm
An HDFC ATM at SDA Market in New Delhi. (Express photo: Abhinav Saha)
The Reserve Bank of India (RBI) has asked the private sector lender HDFC Bank to temporarily stop all the launches of its digital business generation activities under the “Digital 2.0” program and the hiring of new credit card customers.
What prompted the RBI to take action against HDFC Bank?
On December 2, the RBI issued an order to HDFC Bank regarding certain incidents of outages in the bank’s internet banking, mobile banking, and payment services over the past two years. This included the recent outages to the bank’s internet payment and banking system on November 21, 2020 due to a power outage at the main data center. The RBI advised the bank to temporarily halt all launches of digital business generation activities planned under its Digital 2.0 program (to be launched) and other proposed business generation IT applications, and the recruitment of new credit card customers. credit.
On December 23, 2019, customers faced issues when making EMI loans and settling credit card bills.
HDFC Bank outage: When will the curbs be lifted?
The order stated that the bank’s board should examine the failures and correct the liability. The lifting of the measures will be considered after satisfactory compliance with the main critical observations identified by the RBI.
What is the explanation of HDFC Bank?
In a stock exchange presentation, the bank said: “Over the past two years, HDFC Bank has taken several steps to strengthen its IT systems and will continue to work quickly to close the balance, and will continue to interact with the Regulator in this respect.”
The bank said it has always strived to provide seamless digital banking services to its customers. “The bank has been taking conscious and concrete steps to remedy the recent disruptions in its digital banking channels and assures its clients that it expects current supervisory actions to have no impact on their existing credit cards, digital banking channels and operations. existing, ”the bank said. 📣 Follow Express explained on Telegram
Will RBI’s steps affect HDFC Bank’s business?
The bank said these measures will not substantially affect its overall business. However, HDFC Bank, which is the market leader in the credit card business, will not be able to acquire new credit card customers until the problems are fixed and the RBI gives its approval.
The bank’s digital expansion plans are likely to be delayed due to RBI action. Being detained by the regulator could also affect the bank’s image.
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