RBI lifts all restrictions on HDFC Bank's new digital launches

'Reserve Bank of India has lifted the restriction on the business generating activities planned under the Bank's Digital 2.0 programme,' announced HDFC Bank

The Reserve Bank of India (RBI) has lifted the restrictions imposed on HDFC Bank regarding its business generating activities planned under the Digital 2.0 programme, the lender said on Saturday.

“We would like to inform one and all that the RBI has lifted the restriction on the business generating activities planned under the bank’s Digital 2.0 programme, vide its letter dated March 11, 2022," the bank said in a stock exchange filing.

In December 2020, RBI had directed HDFC Bank to temporarily halt all digital launches as well as new sourcing of credit card customers, following various outages the bank faced due to technical glitches in the past two years. The RBI action came after the bank's customers faced a number of incidents of outages in internet banking, mobile banking, and payment utilities of the bank over the past two years.

Last year, in August, RBI had partially lifted the ban on HDFC Bank by allowing it to issue new credit cards but had continued the embargo on its digital activities planned under Digital 2.0 programme.

“We are fully committed to ensuring continued adherence to the highest standards of compliance with RBI recommendations," the bank said.

The bank said they have utilised the period of embargo to draw up short, medium, and long-term plans to meet the evolving digital requirements of our customers and it will roll out these initiatives in the days to come. “We are happy that we will once again be able to offer our customers our full suite of best-inclass services and continue to serve them with dedication and humility," the Mumbai-headquartered lender said.