RBI ask HDFC Bank to halt digital activities, sourcing new credit card customers; bank says no impact on customers

New Delhi: After the Reserve Bank of India (RBI) asked private sector lender HDFC Bank to temporarily stop all launches of its upcoming digital business-generating activities and sourcing of new credit card customers, the bank has said that the central bank's decision will not have any impact on existing credit cards, digital banking channels.

RBI has asked HDFF Bank to stop the above services after outage at its data centre which impacted operations last month. In addition, the order has directed the bank board to examine the lapses and fixes accountability.

HDFC Bank said the RBI order "has advised the bank to temporarily stop all launches of the digital business-generating activities planned under its program Digital 2.0 and other proposed business generating IT applications and sourcing of new credit card customers".

HDFC Bank said that it has been taking major steps to remedy the recent outages on its digital banking channels. The bank has also assured 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 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," it added.

The lender said the above measures shall be considered for lifting after satisfactory compliance with the major critical observations as identified by the RBI. HDFC Bank said that it has taken several measures to fortify its IT systems over the last two years. The bank also added that it will continue to work swiftly to close out the balance and would continue to engage with the regulator in this regard.