HDFC Bank set for Digital 2.0 as RBI lifts curbs on business generating activities
The Reserve Bank of India (RBI) has lifted the restrictions imposed on HDFC Bank regarding its business generating activities planned under the Digital 2.0 programme.
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In December 2020, the banking regulator had directed HDFC Bank to temporarily halt all digital launches as well as new sourcing of credit card customers, following various outages that the private lender faced due to technical glitches in the past two years.
The action by the central bank came after customers of HDFC Bank faced a number of incidents of outages in internet banking, mobile banking, and payment utilities of the bank over the past two years.
New cards, digital activities to help gain lost ground
Following the RBI’s nod in August last year to issue new credit cards, the lifting of restrictions on digital activities will hold HDFC Bank in good stead. The embargo by RBI on new card issuances had allowed rivals like ICICI Bank and SBI to get a leg up in the credit card segment. However, with both the restrictions now lifted, HDFC Bank is expected to make up for the lost ground in the upcoming fiscal.
In August 2021, the RBI had partially lifted the ban on HDFC Bank by allowing it to issue new credit cards but had continued the embargo on the latter’s digital activities planned under its Digital 2.0 programme.
“The RBI vide its letter dated March 11, 2022 has lifted the restrictions on the business generating activities planned under the Bank’s Digital 2.0 programme. The members of the board of directors have taken note of said RBI letter,” HDFC Bank stated on Saturday.
“We would like to extend our gratitude to the regulator for this action. We are fully committed to ensuring continued adherence to the highest standards of compliance with RBI recommendations,” the bank said.
“We also take this opportunity to convey our heartfelt thanks to our customers for the trust and faith they have reposed in us. We have utilised this time to draw up short, medium, and long-term plans to meet the evolving digital requirements of our customers and we will roll out these initiatives in the days to come.
“We are happy that we will once again be able to offer our customers our full suite of best-in-class services and continue to serve them with dedication and humility,” the bank further said.