HDFC Bank says RBI lifts all restrictions on bank’s business, including new digital launches

The India’s largest private lender HDFC Bank on Saturday in a release said that the Reserve Bank of India (RBI) has lifted all the restrictions it had put in place on the bank’s business generating activities planned under the Digital 2.0 program.

"...we wish to inform you that the RBI vide its letter dated March 11, 2022, has lifted the restrictions on the business generating activities planned under the Bank's Digital 2.0 program. The members of the Board of Directors have taken note of said RBI letter," HDFC Bank said in an exchange filing.

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HDFC Bank in a statement said it is fully committed to ensuring continued adherence to the highest standards of compliance with RBI recommendations. "We would like to extend our gratitude to the regulator for this action," it said.

The bank said it had utilised this time of restrictions to draw up short, medium, and long-term plans to meet the evolving digital requirements of its customers and it will roll out these initiatives in the days to come.

"We are happy that we will once again be able to offer our customers our full suite of best-in-class services and continue to serve them with dedication and humility," the bank said.

In 2020, the RBI after repeated tech glitches had asked HDFC Bank to stop all launches of digital business generating activities planned under Digital 2.0 program and other proposed business generating IT applications, and barred it from sourcing new credit card customers.

In August 2021, RBI has partially relaxed the restrictions placed on the bank for sourcing of new credit cards and it had not lifted the restrictions on digital business generating activities then.

The RBI asked HDFC Bank's board to examine the lapses and fix accountability for the tech glitches. I also had said that the restrictions would be lifted upon satisfactory compliance with the major critical observations identified by it.