Relief For HDFC! RBI Lifts 8 Month Ban From Issuing New Credit Cards
A series of technical glitches in HDFC's internet banking platform, mobile banking app & payment services prompted RBI to issue an order in December banning the issuance of new credit cards by HDFC.
New Delhi: The Reserve Bank has given a big relief to the country's largest private sector bank HDFC. HDFC Bank has now been allowed to issue new credit cards after an 8-month ban. HDFC Bank on Wednesday said RBI has lifted restrictions imposed on the bank for issuing new cards.
In the past two years, RBI issued an order banning the issuance of new credit cards due to some incidents of disruption in HDFC Bank's internet banking, mobile banking and payment services.
HDFC told the stock market, "We want to inform you that RBI has relaxed the ban on issuing new credit cards through a letter dated August 17, 2021. RBI will continue to ban new offerings under digital business activities employed under Digital 2.0 till further review. We will continue to work closely with RBI and ensure compliance on all standards."
Existing credit card customers were not affected
The bank's existing credit card customers were not affected by the ban. As of June, the bank's credit card subscriber strength was 1.48 crore Earlier on July 17, HDFC Bank Chief Executive and Managing Director Shashidhar Jagadeesan had said that the bank has completed 85 per cent of the compliance reforms as required by the Reserve Bank of India. Now the ball is in the RBI's court over lifting the ban from the bank.
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