Mumbai: Bank of India’s reserve (RBI) has enabled HDFC Bank to issue credit cards to new customers in a rollback part of the limitations imposed by the central bank in December 2020.
The ban on the launch of a new digital offer will continue for now.
RBI has also asked the Bank Board to declare the compliance of commitments carried out by HDFC Bank.
According to sources, the Bank received notifications regarding the ban on Tuesday and is expected to be intimate the same as the exchange.
Although the announcement came late for the Indian market, the acceptance of the Bank’s HDFC American (ADR) depository rose almost 1% on the US stock exchange at 9pm.
The previous bank said that it was in a state of readiness to issue a card immediately after the prohibition was appointed.
Relaxation comes just in time for HDFC Bank as a large piece of credit card expenditure occurs during the celebration season from September to December.
Retailers also announce special offers during this period to increase sales.
HDFC Bank has lost more than 1% market share in business after ban, but still contributes nearly four credit card transactions.
SBI cards, Bank ICICI and Axis Bank have made progress in this period.
In interaction with media last month, Parag Rao, a senior executive at HDFC Bank, said that the bank mostly issued a card to customers who had an account with it.
Like opposing five crore customers, the bank has issued 1.5 crore credit cards.
He said that while the gap would remain due to bank credit policies, there had been a large leap in the customer base, creating hidden requests.
The RBI has imposed a ban on HDFC Bank after repeated blackouts on Internet Banking and Mobile Banking platforms.
Since then, the bank told shareholders that had taken special initiatives to improve infrastructure, disaster recovery and improve security.
In his interaction, Rao said that the Bank had used the period since the prohibition of strengthening Salesforce and other channels.
“We have used time to remove our process barriers, speed up our software updates, identify failure points with partners and place the framework to replace the system before there is a problem.” In addition to direct repairs below the short-term plan, the Bank has also submitted to the Medium Term RBI plan where it will fully process the digital platform that will allow banks to manage future growth.