Mumbai: Eight months after notification of the largest private sector lenders in the country from the sale of new credit cards, the Reserve Bank of India (RBI) has raised the ban, said the banking source on Tuesday.
However, the prohibition launched a new technology initiative, said the source.
In December last year, the RBI had come out with unprecedented actions that implemented a ban, after recurrent technology blackouts in lenders, which are market leaders in the credit card segment.
Rival ICICI Bank and SBI cards seize the opportunity to narrow the gap with HDFC Bank.
“Communication has been received by the HDFC Bank regarding the lift of a credit card ban on Tuesday,” one source, who refused to be identified, said.
Existing bank users are not affected by the ban and have 1.48 crore credit card customers in June.
On July 17, the Chief Executive and Managing Director of Bank Sashidhar Jagdishan said it had met 85 percent of the RBI requirements for the desired improvement, and the ball is now in the court regulator to allow banks.
Previously, the technology and vertical credit card said the time from the market had been used to take back processes and teams were filting to go.
Jagdishan said the technology audit also ended and the RBI will now “independently” take the view when to raise the penal action taken against the bank.
“We have given a historical milestone to the regulator in terms of what we do on technology, obey their advisors and directions.” We have discussed mostly when we talk.
Nearly 85 percent of what we have to do has been borne out, “Jagdshan, who has been with a lender for more than two decades and works as a ‘change agent’ in years that lead to its height, he adds the ball to the regulator court.
“When they looked, because they saw that we were on the right track, I was sure at one time, they would lift the embargo.” Recognizing that the Bank has lost a market share in credit.
The card segment because of the ban, Jagdshan said the technology blackout was a phenomenon Global but it is the time needed to recover from a setback where the bank is wrong, leading to “rap on the finger books” of the regulator.
Actions on HDFC Bank have been followed by a ban on the MasterCard and American Express card from selling any new card because Failure to comply with data localization rules.
HDFC Bank shares on Tuesday fell 0.95 percent to be closed At Rs 1,514.85 each at BSE.