In December, the RBI reacted to frequent technological disruptions at HDFC Bank over a two-year period by imposing unprecedented penalties, including a restriction on issuing new credit cards and establishing new digital programs.
The Reserve Bank of India (RBI) authorized HDFC Bank to issue new credit cards on Tuesday, following months of enforcing a suspension as a penalty due to technical problems, according to news agency Reuters.
However, the RBI indicated that its temporary restriction on the institution launching new digital initiatives remains in effect, according to the newspaper.
According to other reports, the central bank has requested that the lender submit a board-approved document demonstrating continuous compliance with its IT examination findings.
In December, the RBI reacted to frequent technological disruptions at HDFC Bank over a two-year period by imposing unprecedented penalties, including a restriction on issuing new credit cards and establishing new digital programs.
Since the ban was imposed, the bank has been in close communication with the RBI, and it has strengthened its systems in accordance with the regulator’s recommendations.
HDFC Bank was not the only bank to suffer RBI’s Punishment
HDFC Bank is not the only bank that has been subjected to the RBI’s heavy sanctions over the course of several months. Previously, the central bank had instructed Mastercard and American Express not to sell any new cards due to data localisation non-compliance.
In this month’s monetary policy review, RBI governor Shaktikanta Das emphasized that the RBI’s desire to maintain regulatory compliance has prompted it to take aggressive actions against entities such as HDFC Bank, Mastercard, and American Express.
“Whenever there are deviations or violations of the regulatory rules, it is our role and responsibility as the regulator to ensure compliance.”
“All of our efforts are the result of our eagerness and responsibility to ensure that regulatory rules are followed,” Das told reporters during the annual post-policy review press conference.