The Reserve Bank of India relaxes the technology ban on HDFC Bank after 9 months. India's central banking institution had issued a penalty due to technical glitches in the bank.
The central bank has allowed the private lender to issue new credit cards. However, India's central regulatory body of banking stated that its temporary ban on the lender for introducing new, the digital initiative continues. The reports suggest that the RBI had issued orders in December and February to HDFC Bank on certain incidents of outages in the internet banking /mobile banking/payment utilities of the bank over the past two years. In a regulatory filing it was stated "As a further update to the above intimations, we wish to inform you that the RBI vide its letter dated August 17, 2021, has relaxed the restriction placed on sourcing of new credit cards." The board of directors of the bank has taken note of the said RBI letter. The HDFC Bank said the restrictions on all new launches of the digital business generating activities planned under Digital 2.0 will continue till further review by RBI.
The private bank, HDFC's managing director and chief executive Sashidhar Jagdishan had said a month ago that the bank has complied with 85 per cent of RBI's asks on technology. He also said that the RBI ban on new digital launches is over tech issues. Earlier, in December last year, the RBI had barred HDFC Bank from launching any new digital products or services and issuing new credit cards till the bank resolve the tech issues.
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