The Reserve Bank of India has asked HDFC Bank Ltd. to put a temporary halt to all digital banking launches and sourcing of new credit card customers.
Reason
The measure was taken after the lender faced a series of technical glitches over the last two years.
HDFC Bank has had multiple failures in regards to digital services with customers complaining of inability to conduct credit and debit card transactions, internet banking, UPI, IMPS, and other modes of payment.
RBI order to HDFC Bank
The RBI said Order has advised the Bank to temporarily stop:
i) all launches of the digital business generating activities planned under its program ‐ Digital 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 order also states that HDFC Bank’s board must examine the lapses and fix accountability.
Date of issue
The RBI issued the order dated December 2, 2020, to HDFC Bank.
Complaints against HDFC
On November 21, customers had complained of the payment stack being inoperative. The bank said this was due to an unexpected outage at one of its data centres.
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.
HDFC response
“Due to a technical glitch, some of our customers have been having trouble logging into our NetBanking and MobileBanking App.
Our experts are working on it on top priority, and we’re confident we’ll be able to restore services shortly.
While we deeply regret the inconvenience caused, there’s no cause for undue concern.”
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