RBI also put on Bank’s proposed Digital Initiatives
HDFC Bank has put a temporary moratorium on new proposed digital initiatives and new credit card issuance by RBI. The bank’s data center has been banned from functioning due to a technical problem.
The bank said on Thursday that the RBI has instructed its board in its country to investigate the flaws and fix accountability. RBI also said that the board should know how this problem is happening again and again, and who is responsible for it.
The central bank has asked the order to temporarily stop all digital business generating activities under the bank’s Digital 2.0 program. At the same time, all those proposed businesses are also banned, which use information technology (IT). These restrictions will be lifted once all related regulatory compliance is met.
HDFC Bank has issued 1.38 crore credit cards in the month of October.
Bank: Nothing impact on customers and work
HDFC Bank official said that RBI’s move would not affect its functioning and services of existing customers. The operation of the bank’s credit card and digital banking services will also not be affected. Till the implementation of this order, security related sub-license will be allowed only for mobile banking apps.