The Reserve Bank of India (RBI) on 17th August has allowed HDFC bank to issue new credit cards. As per the source “The restrictions that were there on issuing new cards have been discontinued and the RBI has now permitted the bank to undertake sourcing new credit cards, while the other restrictions would continue.”
On 3rd December 2020, the banking regulator had barred HDFC from issuing new credit cards and launching any new digital products after multiple issues linked to digital banking, cards and payments on the bank’s platform in the last three years.
In January 2021, HDFC bank had presented a plan to RBI explaining ways to fix repeated breakdown of services in the bank’s technology platform as seen over the past three years.
“We will work with experts and the regulator to fortify the identified areas for improvement. Internally, we are looking at this as an opportunity to further improve ourselves and emerge stronger,” Sashi Jagdishan, managing director and chief executive officer of HDFC Bank, had said
In this regard, RBI said the restriction would be lifted only after the bank’s compliance with major critical areas identified by the RBI.