HDFC Bank on August 18 said the Reserve Bank of India (RBI) has allowed the lender to source new credit cards.
"We wish to inform you that the RBI vide its letter dated August 17, 2021 has relaxed the restriction placed on sourcing of new credit cards. The Board of Directors of the Bank has taken note of the said RBI letter," the bank said in a BSE filing.
HDFC Bank said the restriction on new digital launches planned under Digital 2.0 will continue till further review by the central bank.
"We will continue to engage with RBI and ensure compliance on all parameters," HDFC Bank said.
In December 2020, the RBI had asked HDFC Bank to put all new digital launches and issuance of new credit cards on hold, following instances of outages in the internet banking / mobile banking/ payment utilities of the lender over the past two years.
Also read - RBI lifts HDFC Bank digital ban: What does this mean for HDFC Bank?
In a separate statement to the media, HDFC Bank said strategies for its credit cards business will be rolled out in due course.
"As stated earlier, all the preparations and strategies that we have put in place to 'come back with a bang' on credit cards will be rolled out in the coming time," HDFC Bank said.
CNBC-TV18 reported that the RBI asked HDFC Bank to submit a board-approved letter of commitment towards continued compliance.
"The bank is required to submit a board-approved letter of commitment towards continued compliance and also to achieve full compliance with the remaining observations of RBI’s IT examination report. The restrictions lifted as above is conditional upon abiding by the letter of commitment furnished to RBI," the banking regulator said in the communication.
HDFC Bank's share price rose 3 percent in early trade on August 18 following the partial easing of the restrictions.
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