After eight months of “restrictions”, the Reserve Bank of India (RBI) has allowed HDFC Bank to begin issuing new bank cards. However, the RBI restrictions on the financial institution’s new choices beneath its Digital 2.0 technique will stay.
On December 2, the RBI directed the financial institution to briefly cease all launches of the digital enterprise producing actions deliberate beneath its programme Digital 2.0 (to be launched) and different proposed enterprise producing IT purposes, and sourcing of latest bank card clients.
The RBI ban got here after sure incidents of outages within the web banking, cell banking and fee utilities of the lender over the previous two years. The financial institution had 1.48 crore bank card clients as of June.
In a communication to HDFC Bank on Tuesday, the RBI stated, “The said restrictions are hereby lifted to permit the bank to undertake the sourcing of new credit cards. The restrictions on all new launches of the digital business generating activities planned under the Digital 2.0 programme of the bank will continue till further review.” On July 17, the financial institution’s CEO and MD Sashidhar Jagdishan stated it has complied with 85 per cent of the RBI’s necessities on the enhancements desired, and the ball is now within the regulator’s courtroom to re-allow the financial institution.
The motion towards HDFC Bank has been adopted with a ban on Mastercard and American Express from promoting any new playing cards due to a failure to stick to information localisation guidelines.
