No new credit cards, digital launches, RBI tells HDFC following outages
New Delhi, Dec 03: The HDFC Bank has been has been asked by the Reserve Bank of India to stop launches of new digital business activity and not add new credit card customers following repeated outages in its electronic banking services.
The RBI also asked the bank to examine the lapses and fix accountability. "The RBI vide said Order has advised the Bank to temporarily stop i) all launches of the digital business generating activities planned under its program ‐ Digital 2.0 (to be launched) and other proposed business generating IT applications and (ii) sourcing of new credit card customers. In addition, the order states that the Bank's Board examines the lapses and fixes accountability," a letter to the stock exchanges by HDFC Bank said.
While the bank has said that this was a one-off issue, customers have taken to the social media to complain about an issue with the server delays with regard to receipt of one-time password and authorisation of transactions.
HDFC Bank said in a statement that it has taken several measures to fortify its IT systems. We will continue to move swiftly to close out the balance and to engage with the regulator in this regard, the bank said.
This is for the first time the RBI has taken such a drastic action against such a large bank.
HDFC said, "the bank has endeavoured to provide seamless banking services to its customers. 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."