RBI orders HDFC Bank to stop its digital launches and new credit cards

 

 

 

Reserve bank of India has asked private sector lender HDFC Bank to halt all its digital launches as well new sourcing of credit card customers on temporary basis on Thursday as news agency ANI reported.  This was after the outage at its data centre which impacted operations last month.

In a BSE filing, HDFC said, “RBI has issued an order dated December 2, 2020, toHDFC Bank Ltd with regard to certain incidents of outages in the internet banking/ mobile banking/ payment utilities of the bank over the past two 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.”

HDFC Bank said the RBI order has advised the bank 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.

In addition, the order has directed the bank board to examine the lapses and fixes accountability, HDFC Bank added.

This comes after several customers faced a number of incidents of outrages in the internet banking, mobile banking and payment utilities over the past two years, including the recent outrages in the bank’s internet banking and payment system on November 21 due to power failure in the primary data centre.

HDFC Bank said that it has been taking major steps to remedy the recent outages on its digital banking channels.

The bank said, “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. The bank believes that these measures will not materially impact its overall business,”.

 

 

 

 

 

 

 

Edited by: Sakshi Kaithwas

With inputs from ANI