The Reserve Bank of India (RBI) has lifted the restrictions imposed on HDFC Bank concerning its enterprise producing actions deliberate beneath the Digital 2.0 programme.
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In December 2020, the banking regulator had directed HDFC Bank to briefly halt all digital launches in addition to new sourcing of bank card prospects, following varied outages that the non-public lender confronted on account of technical glitches previously two years.
The motion by the central financial institution got here after prospects of HDFC Bank confronted a variety of incidents of outages in web banking, cell banking, and fee utilities of the financial institution over the previous two years.
ExplainedNew playing cards, digital actions to assist achieve misplaced floor
Following the RBI’s nod in August final 12 months to concern new bank cards, the lifting of restrictions on digital actions will maintain HDFC Bank in good stead. The embargo by RBI on new card issuances had allowed rivals like ICICI Bank and SBI to get a leg up within the bank card phase. However, with each the restrictions now lifted, HDFC Bank is anticipated to make up for the misplaced floor within the upcoming fiscal.
In August 2021, the RBI had partially lifted the ban on HDFC Bank by permitting it to concern new bank cards however had continued the embargo on the latter’s digital actions deliberate beneath its Digital 2.0 programme.
“The RBI vide its letter dated March 11, 2022 has lifted the restrictions on the business generating activities planned under the Bank’s Digital 2.0 programme. The members of the board of directors have taken note of said RBI letter,” HDFC Bank said on Saturday.
“We would like to extend our gratitude to the regulator for this action. We are fully committed to ensuring continued adherence to the highest standards of compliance with RBI recommendations,” the financial institution mentioned.
“We additionally take this chance to convey our heartfelt due to our prospects for the belief and religion they’ve reposed in us. We have utilised this time to attract up quick, medium, and long-term plans to fulfill the evolving digital necessities of our prospects and we are going to roll out these initiatives within the days to come back.
“We are happy that we will once again be able to offer our customers our full suite of best-in-class services and continue to serve them with dedication and humility,” the financial institution additional mentioned.