RBI Asks HDFC to Stop Digital Activities Following Outage Reports

“The Reserve Bank of India has issued an order dated December 02, 2020 to HDFC Bank Limited with regard to certain incidents of outages in the internet banking/ mobile banking/ payment utilities of the Bank over the past 2 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,” a stock exchange notification stated.

“The RBI vide said Order has advised the Bank to temporarily stop i) all launches of the Digital Business generating activities planned under its program ‐ Digital 2.0 (to be launched) and other proposed business generating IT applications and (ii) sourcing of new credit card customers,” the notification added.

The notification also added that the regulator’s order asks the lender’s board of directors to examine the lapses and “fix accountability”.

“The above measures shall be considered for lifting upon satisfactory compliance with the major critical observations as identified by the RBI,” the notification adds.

HDFC Bank in a statement said that over the last two years, it has taken several measures to fortify its IT systems and will continue to work swiftly to close out the balance and would continue to engage with the regulator in this regard.

“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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