RBI has asked HDFC bank to temporarily stop all launches its upcoming digital initiate activities

Private sector lender HDFC Bank on Thursday said the Federal Reserve Bank of India (RBI) has asked it temporarily stop all launches of its upcoming digital business-generating activities and sourcing of latest MasterCard customers after outage at its data centre which impacted operations last month.

RBI has issued an order dated December 2, 2020, to HDFC Bank Ltd with reference to certain incidents of outages within the internet banking/mobile banking/ payment utilities of the bank over the past two years, including the recent outages within the bank’s internet banking and payment system on November 21, 2020, thanks to an influence failure within the primary data center, HDFC Bank said during a regulatory filing.

HDFC Bank said the RBI order “has advised the bank to temporarily stop all launches of the digital business-generating activities planned under its program Digital 2.0 and other proposed business generating IT applications and sourcing of latest MasterCard customers”. Additionally , the order has directed the bank board to look at the lapses and fixes accountability, HDFC Bank added.

The lender said the above measures should be considered for lifting upon satisfactory compliance with the main critical observations as identified by the RBI. HDFC Bank said “over the last two years, it’s taken several measures to fortify its IT systems and can still work swiftly to shut out the balance and would still engage with the regulator during this regard.

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“The bank has been taking conscious, concrete steps to remedy the recent outages on its digital banking channels and assures its customers that it expects the present supervisory actions will haven’t any impact on its existing credit cards, digital banking channels and existing operations. The bank believes that these measures won’t materially impact its overall business,” it added.