The lender said the above measures shall be considered for lifting, upon satisfactory compliance with the major critical observations as identified by the RBI.
The order has directed the bank board to examine the lapses and fix accountability, HDFC Bank added. Photo: iStock)
Share price of private lender HDFC Bank plunged over 1 per cent on Thursday afternoon after the Reserve Bank of India asked it to temporarily stop all launches of its upcoming digital business-generating activities and sourcing of new credit card customers.
Erasing all its early gains, bank’s shares slipped Rs 15.05 or 1.07 per cent at Rs 1,391.90.
Similarly, on the NSE, it declined Rs 15.45 or 1.10 per cent at Rs 1,391.50.
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“RBI has issued an order dated December 2, 2020, to HDFC Bank Ltd with regard to certain incidents of outages in the internet banking/ mobile banking/ payment utilities of the bank over the past two years, including the recent outages in the bank’s internet banking and payment system on November 21, 2020, due to a power failure in the primary data centre,” HDFC Bank said in a regulatory filing on Thursday.
HDFC Bank said the Reserve Bank of India (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 new credit card customers”.
In addition, the order has directed the bank board to examine the lapses and fix accountability, HDFC Bank added.
The lender said the above measures shall be considered for lifting, upon satisfactory compliance with the major critical observations as identified by the RBI.
“The Bank has always endeavored to provide seamless digital banking services to its customers. 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 current supervisory actions will have no impact on its existing credit cards, digital banking channels and existing operations. The Bank believes that these measures will not materially impact its overall business,” it added.
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