The private sector lender on Saturday said the RBI has removed all restrictions on HDFC Bank, allowing it to unveil new digital initiatives.
“We would like to inform all that the Reserve Bank of India (RBI) has lifted restrictions on business creation activities planned under the Bank’s Digital 2.0 programme,” HDFC Bank said in a statement. Statement.
The Bank’s Digital 2.0 program is designed to provide its customers with products for a seamless financial experience. It will help customers move from a single transaction to a complete financial solution journey such as loan disbursement, payments and investments.
In December 2020, the RBI barred HDFC Bank from issuing new cards and launching new digital initiatives after repeated technical outages at the lender, which is the market leader in the credit card segment.
The RBI’s action comes after the bank’s customers faced several incidents of outages in internet banking, mobile banking and payment utilities over the past two years. Rivals ICICI Bank and SBI Cards availed the opportunity to bridge the gap with HDFC Bank.
The action against HDFC Bank was followed by a ban on issuance of new cards by Mastercard and American Express for failure to comply with data localization rules.
Following the corrective action of HDFC Bank, the regulator had partially lifted the ban on card issuance in August last year. However, restrictions on introducing new technology initiatives continued.
With the removal of both the restrictions, the bank said that it is fully committed to ensuring continued adherence to the highest standards of compliance with the RBI’s recommendations.
We have utilized this time to formulate short, medium and long term plans to meet the evolving digital needs of our customers and we will be launching these initiatives in the coming days.