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RBI lifts HDFC ban on issuing new credit cards

IN Bureau

India's largest private-sector lender HDFC Bank said on Wednesday that the RBI has relaxed restrictions placed on it last year on issuing new credit cards.

After instances of digital outages at the bank last year were posing problems for customers, RBI had, on December 2, barred the bank from issuing any new credit cards till further notice. With nearly 15 million credit cards, HDFC Bank is the largest player in the segment with a close to 24 per cent market share.

However, restrictions on the launch of new digital products by the company will continue till further review by the Reserve Bank of India, HDFC Bank said in a regulatory filing.

Before the ban, HDFC had added more than 100,000 credit card customers a month between April and November. Over the last eight months, HDFC Bank's rivals such as ICICI Bank and SBI Cards have gained ground.

Despite the ban, HDFC Bank remains the largest credit card issuer, with 14.8 million cards at the end of June, followed by SBI Card with 12 million and ICICI Bank with 11.03 million.