RBI appoints exterior agency to audit HDFC Bank’s IT infra in view of service outages
Image Source : PTI RBI appoints exterior agency to audit HDFC Bank’s IT infra in view of service outages
HDFC Bank on Tuesday stated the Reserve Bank of India (RBI) has appointed an exterior IT agency for finishing up a particular audit of its IT infrastructure within the aftermath of repeated service outages on the nation’s largest non-public sector lender over the previous two years.
“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 shall accordingly extend its cooperation to the external professional IT firm so appointed by RBI for conducting the special IT audit as above,” HDFC Bank stated in a regulatory submitting.
Last month, HDFC Bank had submitted an in depth plan of motion to the RBI to handle repeated service disruption points on account of outage, saying it was hopeful of enhancing its know-how platform in three months.
Progress is being made on the plan of motion supplied to the RBI and the financial institution has taken this positively as it’ll elevate the usual, in keeping with a senior official of HDFC Bank.
The motion plan will take 10-12 weeks for implementation, and additional timeframe will depend upon the RBI’s inspection. Based on the satisfaction stage, the regulator will elevate the ban, the official stated at an analysts’ meet.
In December, the Reserve Bank of India (RBI) quickly barred HDFC Bank from launching new digital banking initiatives and issuing new bank cards after taking a critical view of service outages on the lender over the past two years.
“RBI has issued an order dated December 2, 2020, to HDFC Bank Ltd with regard to certain incidents of outages in the internet banking/ mobile banking/ payment utilities of the bank over the past two years, including the recent outages in the bank’s internet banking and payment system on November 21, 2020, due to a power failure in the primary data centre,” HDFC Bank had stated in a regulatory submitting.
The financial institution has been penalised for 2 main outages, one in November 2018 and the opposite in December 2019.
Taking a stern view of the repeated outages, RBI Governor Shaktikanta Das had stated in December the regulator had some considerations about sure deficiencies and it was essential that HDFC Bank strengthens its IT system earlier than increasing additional.
“… we cannot have thousands and lakhs of customers who are using digital banking to be in any kind of difficulty for hours together and especially when we are ourselves giving so much emphasis on digital banking. Public confidence in digital banking has to be maintained,” Das had stated.
HDFC Bank, the most important lender by belongings within the non-public sector, has been categorised as a systemically necessary entity by the RBI prior to now. It can also be the most important issuer of bank cards and has a major share within the cost processing section.
The financial institution is the most important issuer of bank cards and had 1.49 crore clients as of September 2020 whereas on the debit playing cards entrance, it had 3.38 crore clients.
Earlier, HDFC Bank’s Managing Director and Chief Executive Officer Shashidhar Jagdishan had apologised to clients and promised to work on the deficiencies.
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