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RBI’s rapid action forced HDFC Bank to rectify its technology platform
The Reserve Bank of India (RBI) recently observed that there are some technology-based glitches in the HDFC Bank credit card functioning and it has to be stopped immediately without losing confidence of large number of customers. The Apex bank pulled the plug on the lender-HDFC Bank, restricting it from making any new credit card acquisitions.
HDFC Bank has submitted its plan to stop repeated glitches in its technology platform. The plan submitted to the RBI reportedly includes both short and long-term solutions, which may take up to three months to implement.
India's largest private bank in market capitalisation was barred from issuing any new credit cards on 12 December 2020 after a series of technical glitches. The RBI also stopped the lender from rolling out new digital initiatives such as HDFC 2.0. This dealt a huge blow to HDFC Bank, which on average issues around 1.5 lakh new credit cards every month.
The bank holds 26% per cent share in the credit card business, 40% share in the digital payments business and 10% share in the loans market.