RBI Asks HDFC Bank to Halt Digital Launches Amid Ongoing IT Issues

HDFC Bank has been facing several outages in its internet banking, mobile banking, and payment utilities over the past two years, including a recent power failure in its primary data centre on November 21. The Reserve Bank of India (RBI) has asked the private sector lender to temporarily halt all its digital launches and new sourcing of credit card customers. The RBI has also advised HDFC Bank's board to examine the lapses and fix accountability. Despite the bank's assurance that it will continue to work swiftly to close out the balance, the stock price has taken a hit, trading 1.62% lower at Rs 1,384.10 per unit at the National Stock Exchange.

Key Takeaways:

• The RBI has asked HDFC Bank to halt all digital launches and new sourcing of credit card customers due to ongoing IT issues.
• HDFC Bank has faced several outages in its internet banking, mobile banking, and payment utilities over the past two years.
• The RBI has advised HDFC Bank's board to examine the lapses and fix accountability.
• HDFC Bank has taken several measures to fortify its IT systems over the last two years.
• The RBI has approved HDFC Bank's plans to continue engaging with the regulator to resolve the issues.
• The bank has assured its customers that the current supervisory actions will have no impact on its existing credit cards, digital banking channels, and existing operations.
• HDFC Bank's stock price has taken a hit, trading 1.62% lower at Rs 1,384.10 per unit at the National Stock Exchange.
• The bank has stated that it will continue to work swiftly to close out the balance and engage with the RBI in this regard.
• HDFC Bank's customers are assured that their existing operations will not be impacted by the current issues.

Statistics:

• 1.62% (decrease in HDFC Bank's stock price)
• Rs 1,384.10 (HDFC Bank's stock price at the National Stock Exchange)
• 2 years (duration of HDFC Bank's ongoing IT issues)
• November 21 (date of recent power failure in HDFC Bank's primary data centre)
• 1:30 pm (time of HDFC Bank's stock price at the National Stock Exchange)

Sources:

• [1] Afternoon Voice
• HT Digital Content Services