The Reserve Bank of India has lifted the last of the restrictions it had placed on HDFC Bank Ltd., bringing an end to regulatory action that was initiated in December 2020.
With the restrictions being lifted, HDFC Bank can now launch digital initiatives under the Digital 2.0 program, the lender said in a media statement. “We have utilized this time to draw up short, medium, and long-term plans to meet the evolving digital requirements of our customers and we will roll out these initiatives in the days to come.”
India’s largest private bank had been subjected to certain business restrictions, after a series of technical lapses. The lapses had led to HDFC Bank customers facing multiple digital banking outages. The RBI had then asked the bank to stop adding new credit card customers and pause the launch of any digital initiatives till the problem was resolved.
The regulator had also appointed a third party auditor to review HDFC Bank’s IT infrastructure. Based on the audit report, the regulator had removed the restriction on credit card issuances in August 2021.
While HDFC Bank had seen its credit card market share fall owing to RBI’s restrictions through 2021, things did not come back to normal, even after the restrictions were lifted.