HDFC bank revealed that the current supervisory action will not have a material impact on the bank’s operations.
After frequent technical disruptions that plagued HDFC Bank’s online services, the Reserve Bank of India (RBI) ordered all new digital launches and the supply of new credit cards to be halted temporarily. The central bank order stated that the HDFC bank board has to examine the lapses and correct liability. The recent major disruption facing the bank is the third such instance in a two-year span. Due to the disruption in services, the RBI advised the nation’s largest private lender to stop hiring new credit card customers and halt all planned digital business generation activities under its Digital 2.0 initiative. (Also read: HDFC Bank cannot add customers with credit cards after a power outage)
What does the RBI order mean for HDFC bank?
Reserve Bank of India ordered that due to recent technical disruptions in the bank’s internet banking and payment system on November 21 following a power outage at its main data center, all digital business generation activity launches planned under its Digital 2.0 program the proposed business generating IT applications is temporarily halted. The order also establishes that the hiring of new credit card customers is also restricted.
How does the RBI order affect customers?
HDFC bank revealed in its regulatory action filing today that the current supervisory action will not materially affect the bank’s operations. The bank assured its clients that it expects the RBI order to have no effect on existing operations, including all existing digital banking and credit card channels. It added that these measures will not have a material impact on its overall business.
Also Read: HDFC Bank Falls 2% After RBI Asks It To Stop Digital Launches And New Credit Cards
Meanwhile, HDFC bank shares fell as much as 2 percent today to hit an intraday low of ₹ 1,379 on the BSE after the private lender filed its return following the RBI order. HDFC bank last traded 1.64 percent lower at Rs 1,383.90 on the BSE.
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