The Reserve Bank of India (RBI) has appointed an external IT firm to conduct a special audit of the entire IT infrastructure of the India’s largest private lender HDFC Bank.
The name of the ‘IT firm’ has not been disclosed so far.
Reason
The lender’s e-banking service faced three outages since 2018, which is inconveniencing customers.
Following the development the RBI on tuesday appointed the committee, to avoid further interuption of service.
Bank Statement on Stock Exchange
“RBI has appointed an external professional IT firm for carrying out a special audit of the entire IT infrastructure of the bank under Section 30 (1-B) of the Banking Regulation Act, 1949…, at the cost of the Bank under Section 30 (1-C) of the Act.
The bank said it will co-operate with the external professional IT company appointed by the RBI.
Plan of action from Bank
Last month, HDFC Bank had submitted a detailed plan of action to the RBI to address repeated service disruption issues due to outage, saying it was hopeful of improving its technology platform in three months.
Progress is being made on the plan of action provided to the RBI and the bank has taken this positively as it will raise the standard, according to a senior official of HDFC Bank.
The action plan will take 10-12 weeks to implement, and further time-frame will depend on the RBI’s inspection, however the regulator will lift the ban soon.
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