Halt digital launches, stop selling new credit cards: RBI tells HDFC Bank
Coming down heavily on the country’s largest private sector lender, HDFC Bank, the Reserve Bank of India (RBI) has advised the bank to halt all its digital launches as well new sourcing of credit card customers temporarily.
In an exchange notification, HDFC Bank said, RBI has advised it to temporarily stop all launches of the digital business generating activities planned under its program ‐ Digital 2.0 and other proposed business generating IT applications, and sourcing of new credit card customers.
This comes after the bank customers faced a number of incidents of outages in the internet banking/ mobile banking/ payment utilities of the bank over the past 2 years, including the recent outages in the bank’s internet banking and payment system on November 21, 2020 due to a power failure in the primary data centre.
The RBI has also advised the bank’s board to examine the lapses and fix accountability.
The bank on its part said, over the last two years it has taken several measures to fortify its IT systems and will continue to work swiftly to close out the balance and would continue to engage with the regulator in this regard.
“The bank has been taking conscious, concrete steps to remedy the recent outages on its digital banking channels and assures its customers that it expects the current supervisory actions will have no impact on its existing credit cards, digital banking channels and existing operations”, it said.
The current measures will be lifted by the RBI once it is satisfied of the compliance with major critical observations it has made concerning the bank.