The Reserve Bank of India has asked HDFC Bank to stop issuing credit cards and to stop launching its business generating activities planned under Digital 2.0 and various business generating IT applications. The notice issue date was December 2, 2020 which was given to HDFC Bank by RBI.
The RBI’s action comes after the digital services were disrupted from the evening of 21st November till 22nd November morning. The orders were that HDFC Bank’s board must check the lapses and fix the accountability. These measures shall be looked for lifting upon satisfactory compliance with the critical observations as those were identified by the Reserve Bank of India.
RBI takes in account incidents of outage in the bank’s internet banking, mobile banking and payment utility services over the last two years. HDFC Bank attributed outage on November 21 to a failure in the bank’s data centre.
The customers were suffering various problems. They complained of the payment stack being inoperative. The bank official told money control that the glitch was because of a power outage in DAKC data centre which has some banks as clients. Due to this issue some customers have been facing trouble logging into our Net banking and Mobile banking app. It was found that the outage took place because the bank underestimated the growth in payment volumes and the disruption was more of a capacity issue. The bank has always provided seamless digital banking services to the customers and some steps to remedy the current outages on its digital channels.
HDFC Bank reassured customers stating that the bank expects the current supervisory actions will impact on its existing cards, channels and operations. And they think that these measures will not materially impact its overall business. HDFC Bank had multiple failures in context to digital services with customers complaining of inability to conduct credit and debit card transactions, net banking and other modes of payment.