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RBI puts HDFC’s credit card biz on hold

RBI puts HDFC’s credit card biz on hold

The Reserve Bank of India (RBI) has barred the country’s largest private lender HDFC Bank from adding new credit card customers or launching digital businesses after its digital payment services were disrupted due to a power outage last month.

HDFC has stated in a stock exchange filing on Thursday that the RBI has asked the bank’s board to examine the lapses and fix accountability for the lapse.

It said the central bank would consider lifting the curbs on “satisfactory compliance with the major critical observations” it had made.

On Nov. 21, HDFC Bank’s digital payments business went down for more than 12 hours following a power failure in its primary data centre. The lender had faced similar outages in November 2018 and December 2019.

“We are working on war footing,” said Sashi Jagdishan, Managing Director & CEO of HDFC Bank in a statement to customers published on the bank’s website. “We will work with experts and the regulator to fortify the identified areas for improvement.”.