Mumbai, December 3: The Reserve Bank of India (RBI) has issued an order advising private lender HDFC Bank to temporarily stop sourcing of new credit card customers and other digital activities. The order, dated December 2, was issued by RBI following incidents of outages in HDFC Bank's internet banking, mobile banking and payment utility services over the past two years. HDFC Bank Down: Netbanking, UPI, Online and Card Payments Hit; Bank Blames 'Data Centre Outage'.
The RBI ordered HDFC Bank to halt sourcing of new credit card customers and temporarily stop all launches of its digital business generating activities planned under Digital 2.0 and other proposed business generating IT applications. The central bank also directed HDFC Bank's board to examine the lapses behind service outages and fix accountability. One-time Restructuring May Not Necessarily Help Every Developer: HDFC's Mistry.
"The above measures shall be considered for lifting upon satisfactory compliance with the major critical observations as identified by the RBI," the central bank said. It also took note of the November 21 incident when payment stack system of HDFC Bank had suffered an outage. According to a report by Moneycontro, the bank has reacted to the actions taken by the RBI.
"(HDFC Bank) expects the current supervisory actions will have no impact on its existing credit cards, digital banking channels and existing operations and believes that these measures will not materially impact its overall business," the bank said in its filing to the exchanges, adding that it will continue to work to "swiftly to close out the balance and would continue to engage with the Regulator in this regard."
(The above story first appeared on LatestLY on Dec 03, 2020 11:22 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).