RBI has lifted all restrictions on HDFC Bank and allowed it to unveil new digital initiatives, the private lender said on Saturday.
“We would like to inform everyone that the Reserve Bank of India (RBI) has lifted the restriction on business generating activities planned under the bank’s Digital 2.0 program, see its letter dated March 11, 2022,” HDFC Bank said in a Statement.
The bank’s Digital 2.0 program aims to offer its customers products for a seamless financial experience. It will help customers move from a single transaction to a complete financial solution such as loan disbursement, payments and investments.
In December 2020, RBI banned HDFC Bank from issuing new cards and introducing new digital initiatives after repeated technological failures at the lender, which is the market leader in the credit card segment.
The RBI action came after the bank’s customers faced a series of outages in internet banking, mobile banking and payment services over the past two years. Competitors ICICI Bank and SBI Cards took the opportunity to narrow the gap to HDFC Bank.
The lawsuit against HDFC Bank was followed by a ban on Mastercard and American Express issuing new cards for failing to comply with data localization rules.
Following remedial action by HDFC Bank, the regulator partially lifted the card issuance ban in August last year. However, the ban on launching new technology initiatives remained in place.
With both bans lifted, the bank said it is fully committed to ensuring continued adherence to the highest standards of compliance with RBI recommendations.
“We have used this time to create short-, mid- and long-term plans to meet the evolving digital needs of our customers, and we will roll out these initiatives in the coming days,” she added.