RBI bars HDFC Bank from issuing new credit cards, digital launches following outages

MUMBAI: The Reserve Bank of India (RBI) has requested HDFC Bank to prevent dispatches from new advanced business movement and not to add new Mastercard clients following rehashed blackouts in its electronic financial administrations. The moneylender has likewise requested that the bank’s board analyze the slips and fix responsibility.

The nation’s biggest private bank educated the stock trade on Wednesday that the request from the RBI was given on December 2, and was because of blackouts in the bank’s web banking/versatile banking/installment utilities in the course of recent years. The latest blackout occurred on November 21 when numerous clients couldn’t get to their computerized banking. The bank accused this for a force disappointment in its essential server farm.

“The RBI vide said Order has encouraged the Bank to incidentally stop I) all dispatches of the advanced business creating exercises arranged under its program ‐ Digital 2.0 (to be dispatched) and other proposed business producing IT applications and (ii) sourcing of new Mastercard clients. Likewise, the request expresses that the Bank’s Board looks at the omissions and fixes responsibility,” HDFC Bank said in a letter to the stock trades.

The bank’s gathering head of IT and CIO Munish Mittal had placed in his papers in July 2020. A month ago the bank had named Ramesh Lakshminarayanan of Crisil as its new CIO.

Despite the fact that HDFC Bank has said that the issue was a coincidental issue, clients have been taking to the online media to gripe against an issue with worker delays as to receipt of one-time secret phrase and authorisation of exchanges.

HDFC Bank in an articulation said that it has taken a few measures to sustain its IT frameworks and will keep on moving quickly to finish off the offset and to draw in with the controller in such manner. This is the first run through RBI has made a quite an intense move against an enormous bank. HDFC Bank is the most computerized of every Indian moneylender and sees over 90% of exchanges through non-branch channels.

“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,” the statement said.

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