According to the reports published by CNBC-Tv18, the Reserve Bank of India has partially lifted the ban imposed on HDFC Bank barring it from onboarding new credit card customers. HDFC will now be able to source credit cards users, but won’t be able to launch new digital products. It is worth noting that the HDFC bank has lost around 5.5 lac credit card holders since November 2020. In the same time, ICICI Bank has added 1.3 million credit card users, while SBI has added around 7.5 lac users.
Why was the ban imposed:
In December 2020, RBI took an unprecedented step and imposed a ban on HDFC Bank barring it from onboarding new credit card customers citing the bank’s inability to fix its poor IT infrastructure causing frequent online service outages. The bank was also barred from launching any new digital banking service.
RBI has been in proactive mode to ensure full compliance of its regulations and guidelines. It is worth mentioning that recently RBI also banned MasterCard, American Express and Diners Club from onboarding new customers owing to their non-compliance with the regulator’s guidelines regarding the storage of payments data.
Steps Taken By HDFC Bank:
According to HDFC Bank’s Chief Information Officer, the bank took numerous steps to improve their IT infrastructure; they also brought in an external auditor to evaluate the bank’s online services. HDFC Bank’s MD and CEO, Sashidhar Jagdishan, in an address to the shareholders at the AGM held in July, told that the bank had already complied with 85% on the tech requirements.
This decision by RBI to repeal the ban comes as good news for prospective credit card applicants who are looking for HDFC credit card, but were unable to do so due to the ban. Just in case you’re planning to apply for an HDFC credit card, don’t forget to go through our reviews. We’ve covered all of them in detail on Card Insider.