Stop digital launches, RBI to HDFC

The Reserve Bank of India (RBI) has asked HDFC Bank to temporarily stop its new digital business launches and sourcing of new credit cards customers. The private lender disclosed the same in a statement to stock exchanges on December 3, just a day after the RBI’s order.According to the statement, the RBI’s has issued the instructions with regard to certain incidents of outages in the internet banking,mobile banking and payment utilities of the bank over the past two years, including the recent outages at the bank’s intenet banking and payment system on November 21, 2020 due to a power fault in the primary data centre.

HDFC Bank said RBI has advised the bank to temporarily stop all launches of digital business generating activities planned under its program Digital 2.0 and sourcing of new credit card customers. The RBI’s order has directed the bank’s board to examine the lapses and fix accountability. It also said in the statement that HDFC Bank has taken several measures over the last two years to fortify IT systems and “will continue to work swiftly to close out the balance and engage with the regulator in this regard”. HDFC Bank also said that the current supervisory actions will have “no impact on its existing credit cards, digital banking channels and operations”.“The bank believes that these measures will not materially impact its overall business,” added the bank’s statement.