After internet banking, mobile banking problems, RBI orders lender to stop digital launches, new credit cards

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HDFC Bank failed transactions: Reserve Bank of India  (RBI) has issued an Order dated  December  2, 2020 to HDFC Bank Limited with  regard  to certain incidents of outages in the internet banking / mobile banking / payment utilities of the Bank over the past 2 years, including the recent outages in the Bank’s internet banking and payment system on November 21, 2020 due to a power  failure in the primary data  centre.  

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

(ii)  sourcing  of  new  credit  card  customers.  In  addition,  the  Order  states  that  the  Bank’s  Board  examines the lapses and fixes accountability.   

The above measures shall be considered for lifting upon satisfactory compliance with the major critical observations  as identified by the RBI.   

The Bank over the last two years has taken several measures to fortify its IT systems and will continue to work swiftly to close out the balance and would continue to engage with the Regulator in this regard.   

HDFC Bank  has said that it always endeavoured  to  provide  seamless  digital  banking  services  to  its  customers and that 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.

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HDFC Bank is the largest private Bank in India. HDFC Bank is listed on stock markets and the market cap of the company is Rs 7.85 lk cr. This is at the current HDFC Bank share price of Rs 1400. 


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