RBI prohibits HDFC bank from issuing new credit cards

Dec. 3: The Reserve Bank of India (RBI) has pulled up India’s second largest private bank, HDFC Bank over the number of banking outages, and has issued an order to temporarily halt its digital business launches & barred issuing new credit cards after taking a serious view of service outages. However, there will be no effect of the RBI order on existing operations including credit cards and digital banking.

The banking regulator has advised that the board of the bank must look into why these outages are occurring and find out who is accountable. It further added that the restrictions shall be considered for lifting upon satisfactory compliance with critical observations as identified by the RBI. The Reserve Bank of India”s order came on Wednesday, days after the last instance of service outage across its digital banking channels, including internet banking, mobile banking and other payments.

HDFC Bank said it has been its endeavour to provide seamless digital services and added that it has been taking conscious, concrete steps to remedy the recent outages on its digital banking channels.