RBI halts HDFC Bank from issuing new credit cards

HDFC Financial institution on Thursday mentioned the Reserve Financial institution of India (RBI) had issued an order asking the financial institution to briefly cease all new digital banking initiatives and sourcing of latest bank card clients.

The order, issued on Wednesday, comes after sure incidents of outages within the Web banking / cellular banking / fee utilities of the financial institution over the previous two years, the most recent of which occurred on November 21 as a result of an influence failure within the major knowledge centre, HDFC Financial institution mentioned. “As well as, the order states that the financial institution’s Board [must] look at the lapses and repair accountability. The above measures shall be thought-about for lifting upon passable compliance with the key vital observations as recognized by the RBI,” it mentioned in a regulatory submitting.

India’s largest non-public sector financial institution mentioned that over the previous two years it had taken a number of measures to fortify its IT methods and would proceed to ‘work swiftly to shut out the steadiness and would proceed to have interaction with the banking regulator on this regard’.

“The financial institution has been taking acutely aware, concrete steps to treatment the current outages on its digital banking channels and assures its clients that it expects the present supervisory motion can have no influence on its present bank cards, digital banking channels and present operations,” it mentioned. It added these measures wouldn’t materially influence its total enterprise.

The inventory fell 2.13% on the BSE to ₹1,377.05 and was the most important loser on the Bankex.

In a letter to clients, the financial institution’s MD and CEO Sashi Jagdishan mentioned present clients shouldn’t fear and will proceed to transact with none considerations.

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