HDFC Bank issued 4 lakh credit cards after RBI lifted ban - See all you need to know

India's largest private lender HDFC Bank Limited has issued 4 lakh credit cards after the Reserve Bank of India (RBI) lifted its ban on HDFC Bank, the bank has said. Zee Business reporter Anurag Shah reported that HDFC Bank has said that this is the highest ever new cards issued in the history of the industry.

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The bank has also issued three new credit card types, he said in his report.

On Wednesday, the stocks of HDFC Bank were trading at Rs 1579. down by over 1 per cent around 1:30 pm.

The Central Bank had imposed a ban on both issuing credit cards and launching news tech initiatives on the back of repeated instances of technological outages, in December 2020. On August 18, 2021, it was reported that the RBI had relaxed restrictions on HDFC Bank from issuing new credit cards, HDFC Bank has informed in its filing to exchanges.

Recently, HDFC Bank announced a tie-up with leading payments company Paytm to start selling co-branded plastics before the onset of the festive season.

As mentioned earlier, HDFC Bank, the largest private sector which also leads the credit card segment, was banned from issuing new credit cards for over eight months as a penalty for frequent outages. After the lifting of the ban, it outlined aggressive plans to regain lost market share in up to a year.

The bank had further said that it will focus on distribution partnerships to achieve its target, under which it envisages ramping up new credit card sales to 5 lakh a month by end of the fiscal from 3 lakh in November 2021.

An official statement informed that the credit cards will be powered by Visa and will include offerings targeted at millennials, business owners and merchants.

Paytm has a reach of over 330 million consumers and 21 million merchants, while HDFC Bank has over 5 million debit, credit and prepaid cards, and serves 2 million merchants through its offerings.