Private sector lender HDFC Bank said on Thursday that the Reserve Bank of India (RBI) has asked it to temporarily halt all launches of its upcoming digital business generation activities and recruiting new credit card customers. following an outage in its data center that affected operations last month.
“The RBI has issued an order dated December 2, 2020 to HDFC Bank Ltd regarding certain incidents of interruptions in the bank’s internet banking / mobile banking / payment services during the last two years, including recent interruptions on the bank’s Internet, banking and payment system on November 21, 2020, due to a power outage in the primary data center, “HDFC Bank said in a regulatory filing. HDFC Bank said the RBI order “has advised the bank to temporarily halt all launches of planned digital business generating activities under its Digital 2.0 program and other proposed business generating IT applications and hiring new credit card customers. credit”.
In addition, the order has directed the bank’s board to examine the judgments and correct the liability, HDFC Bank added. The lender said lifting of the above measures will be considered following satisfactory compliance with the main critical observations identified by the RBI.
HDFC Bank said that “in the last two years, it has taken several steps to strengthen its IT systems and will continue to work quickly to close the balance and will continue to engage with the regulator in this regard.” The bank has been raising awareness, concrete steps to remedy recent disruptions in its digital banking channels and assures its clients that it expects current supervisory actions to have no impact on their credit cards, digital banking channels and existing operations. . The bank believes that these measures will not have a material impact on its overall business, “he added.
HDFC Bank has had multiple failures regarding digital services and customers complain of the inability to transact with credit and debit cards, internet banking, UPI, IMPS and other modes of payment.
As early as November 21, customers complained that the payment stack was not working. Something that the bank said was an unexpected outage in one of its data centers.
An HDFC Bank official told Moneycontrol that the failure was due to a power outage at the DAKC data center, which has multiple banks as customers. “
(With PTI inputs)
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