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Reserve Bank lifts all curbs against HDFC Bank

RBI order on HDFC Bank: In September last year the central bank lifted restrictions on the issue of new credit cards.

The Reserve Bank of India has lifted all restricions on HDFC Bank’s digitial business-generating activities, the private sector lender said Saturday. “We would like to inform one and all the Reserve Bank of India has lifted the restriction on business-generating activities planned under the bank’s Digital 2.0 programme,” HDFC said in a stock exchange filing.

In September last year the RBI lifted restrictions on issue of new credit cards.

The bans against HDFC began in December 2020, when it was stopped from launching any new digital product or service, or signing up new credit card customers. This was after multiple disruptions at its data centre and tech issues.

HDFC Bank had then said the RBI ‘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’.

Meanwhile, the RBI on Friday had directed Paytm Payments Bank to stop opening new accounts amid ‘material supervisory concerns’ observed in the bank.

That was the third time Paytm Payments Bank’s faced action from the regulator since its inception in 2017. It has been prohibited from opening new accounts for the second time.

The bank was also directed to appoint an IT audit firm to conduct a comprehensive review.

The RBI had in June 2018 too prohibited the bank from onboarding new customers on account of supervisory concerns. Those restrictions were lifted on December 31, 2018.

A fine of 1 crore was also levied last year after the bank was found to have committed an offence by submitting false information confirming completion of the transfer of Bharat Bill Payment Operating Unit business by One97 Communications to itself.

With input from PTI


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