After frequent technical outages plagued the online services of the HDFC Bank, the Reserve Bank of India (RBI) ordered that all fresh digital launches and fresh credit card sourcing is curbed on a temporary basis. The central bank’s order stated that the HDFC bank’s board has to examine the lapses and fix accountability. The recent major outage faced by the bank is the third such instance in a duration of two years. Due to the disruption in services, the RBI advised the country’s biggest private lender to stop the sourcing of new credit card customers and halt all digital business generating activities planned under its Digital 2.0 initiative. (Also Read: HDFC Bank Barred From Adding Credit Card Customers After Power Outage )
What does the RBI order mean for HDFC bank?
Reserve Bank of India ordered that due to the recent technical outages in the bank’s internet banking and payment system on November 21 following a power failure in its primary data centre, all launches of digital business generating activities planned under its Digital 2.0 program as well as other proposed business generating IT applications is temporarily stopped. The order further stated that the sourcing of new credit card customers is also curbed.
How does the RBI order impact the customers?
HDFC bank revealed in its regulatory stock filing today that the current supervisory action will not materially impact the bank’s operations. The bank reassured its customers that it expects that there will be no effect of the RBI’s order on the existing operations including all digital banking channels and existing credit cards. It added that there will be no material impact of these measures on its overall business.
Meanwhile, the shares of HDFC bank today fell as much as 2 per cent to hit an intraday low of ₹ 1,379 on the BSE after the private lender filed its statement following RBI’s order. HDFC bank was last seen trading at 1.64 per cent lower at Rs 1383.90 on the BSE.