RBI puts curbs on HDFC Bank's digital, credit card operations

By Reuters

  • 03 Dec 2020
Credit: Reuters

The central bank has forbidden India’s largest private lender, HDFC Bank, from adding new credit card customers or launching digital businesses after its digital payment services were hit by a power failure last month.

The Reserve Bank of India has asked the bank’s board to examine the lapses and fix accountability, the lender said in a stock exchange filing on Thursday.

“The above measures shall be considered for lifting upon satisfactory compliance with the major critical observations as identified by the RBI,” it added, referring to the central bank’s curbs.

On Nov. 21, HDFC Bank’s digital payments business was down for more than 12 hours, following a power outage in its primary data centre.

Shares of HDFC Bank turned negative after its statement, giving up earlier session gains of more than 1%, and were last trading down 0.3% by 0516 GMT.

“The bank believes that these measures will not materially impact its overall business,” the lender said.