wordpress blog stats
Connect with us

Hi, what are you looking for?

RBI orders HDFC Bank to examine lapses within digital platforms

HDFC Bank building

HDFC Bank Ltd has been ordered by the Reserve Bank of India (RBI) to examine lapses and fix accountability with regards to a number of incidents over the last two years which saw the banks’ internet banking, mobile banking, and payments channels go offline, according to a stock exchange filing by the bank on Thursday.

In a December 2 order, the RBI has also advised the bank to temporarily stop all launches of its digital business activities, under the banks’ Digital 2.0 initiative, which is yet to be launched, and other proposed business generating IT applications. The central bank has advised the bank to temporarily stop sourcing new credit card customers, the filing says.

“The above measures shall be considered for lifting upon satisfactory compliance with the major critical observations as identified by the RBI. The Bank over the last two years 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,” HDFC Bank said in the filing.

We have reached out to HDFC Bank for comments. We will update this article with their responses.

Recently, over the weekend of November 21-22, HDFC Bank’s digital platforms went offline due to the power outage at the bank’s data centre at the Dhirubhai Ambani Knowledge CITY. Though bank had managed to resolve the issue overnight, the regulator took notice and sought an explanation from the bank. In December last year, there was a “technical glitch” that led to the banks’ customers unable to log-in to the internet banking platform and mobile banking app. Further, two years ago the bank had launched a new mobile banking app but due to issues with its roll-out, it was forced to restore an older version of the app and re-launch the new app.

Advertisement. Scroll to continue reading.

Earlier in November, the bank launched an updated version of its Smart Hub offering, which is the banks’ payments ecosystem for merchants.

HDFC Bank is the country’s second largest bank with over 56 million customers, nearly ₹11.5 lakh crore in deposits, 14.5 million credit cards, around 2 million merchant payment points and nearly 15,000 ATMs, according to its 2019-20 annual report. Around 95.1% of all retail transactions of the bank take place digitally, it said.

In a statement issued on the banks’ website, Sashidhar Jagdishan, the newly appointed managing director and chief executive officer at HDFC Bank said that existing customers did not have to worry and that they could continue to transact with the bank. “We had two outages, one in November 2018 and second one in Dec 2019. We have taken help of external expertise, understood what needs to be done further and have substantially implemented the inputs to strengthen our IT infrastructure and systems. Unexpectedly another incident happened on Nov 21, 2020 and the primary reason for the same is the power outage in our Primary Data Centre. We are working on war footing to strengthen this area also now,” he said.

“Some of our strategic digital initiatives to improve the front end digital experience, improve digital origination, straight through processing, next generation of mobile and internet banking, APIs based banking on the edge etc would now be readied and launched post the approval and clearance from regulator,” Jagdishan said.


**Update (December 3, 2020 4:05 pm): Updated with statement from Sashidhar Jagdishan, managing director and chief executive officer, HDFC Bank. Originally published on December 3, 2020 at 11:48 am.

Advertisement. Scroll to continue reading.

Written By

Reports on banking, payments, fintech and crypto-curencies. Additional reporting on media regulations, data protection and other areas.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



Looking at the definition of health data, it is difficult to verify whether health IDs are covered by the Bill.


The accession to the Convention brings many advantages, but it could complicate the Brazilian stance at the BRICS and UN levels.


In light of the state's emerging digital healthcare apparatus, how does Clause 12 alter the consent and purpose limitation model?


The collective implication of leaving out ‘proportionality’ from Clause 12 is to provide very wide discretionary powers to the state.


The latest draft is also problematic for companies or service providers that have nothing to with children's data.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ