Reserve bank of India has asked the private sector lender HDFC Bank to temporarily stop all launches of its upcoming digital business-generating activities and also to stop sourcing of new credit card customers after an interruption at its data center which impacted operations last month.
On December 2, 2020, RBI has issued an order, to HDFC Bank Ltd concerning incidents of interruptions in the internet banking/ mobile banking/ payment utilities of the bank over the past two years, including the recent failure in the bank’s internet banking and payment system on November 21, 2020, due to an electric failure in the primary data center.
Reserve Bank of India ordered to temporarily stop all its new digital business generating activities which the planned under Digital 2.0 and other business generating IT application and procurement of new credit card customers. The order of RBI has directed the bank board to examine the problems and fix its accountability.
HDFC Bank had a similar incident took place on December 3, 2019, with customers complaining that they were unable to pay their loan EMIs or settle credit card bills on time, the bank then informed the customer that “a technical glitch” had caused the issue and this was being worked on by experts.
HDFC Bank said that the measures shall be considered for lifting upon satisfactory compliance with the major critical observations as identified by the RBI and also added that over the last two years, it has taken several measures to improve the security and performance of 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 has been taking serious steps to rectify the recent interruption/failure on its digital banking channels and assures its customers that its current supervisory actions will have no impact on its existing credit cards, digital banking channels, and current operations. The bank believes that these measures will not materially impact their overall business.
HDFC bank is now trying its best to provide improved online banking to its customers by learning from their past mistakes and improving and studying the drawbacks that affected its online banking system.
