RBI has asked HDFC Bank to temporarily halt issuance of new credit cards

Private sector HDFC Bank said on Thursday that the Reserve Bank of India (RBI) has asked it to temporarily halt its upcoming digital business activities and the issuance of new credit cards. The central bank made the order after HDFC data center operations were affected last month.

RBI has asked HDFC Bank to temporarily halt  issuance  of new credit cards
RBI has asked HDFC Bank to temporarily halt issuance of new credit cards

HDFC told the stock market that, ‘RBI has issued an order to HDFC Bank Limited on December 2, 2020, regarding the problems in the bank’s Internet Banking / Mobile Banking / Payment Banking in the last two years. Includes closure of Internet banking and payment system of the bank on 21 November 2020 due to power outages in the primary data center.

HDFC Bank said the RBI in the order has ‘advised the bank to stop the upcoming digital business development activities and sourcing of new credit card customers under its program Digital 2.0 and other proposed IT applications’. HDFC Bank said that along with this, the bank’s board of directors has been asked to investigate the deficiencies and decide the accountability.

HDFC Bank said that in the last two years it has taken several measures to strengthen its IT system and will complete the remaining work faster. The bank has said that it is taking concrete steps to address the recent setbacks in digital banking channels and hoped that the latest regulatory decision will not have any impact on its existing credit cards, digital banking channels and existing operations. The bank believes that these measures will not affect its overall business.

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