Online Banking Of HDFC, Kotak Mahindra, Yes Bank, IDFC Collapses; RBI Says Nothing To Panic!

Since last 6-7 hours today (October 1st), users of some of the biggest banks in India were facing issues while operating their online banking accounts.

This included HDFC Bank, Kotak Mahindra Bank, Yes Bank and IDFC.

Transactions failed, and money transfer couldn’t happen.

There was a some sort of chaos and panic among users, as they anticipated some bad news.

However, RBI had to intervene and inform all users that there is nothing to worry about.

Online Banking Collapses

Since morning, users of HDFC Bank, Kotak Mahindra Bank, IDFC and Yes Bank were facing difficulties in executing online banking transactions.

SInce festive sales are going on Amazon and Flipkart, lots of users are using net banking to make payments, and they faced issues.

Soon, rumors started floating all around. Since RBI had imposed restrictions on PMC Bank last week, and their customers were not able to withdraw cash (initially Rs 1000 limit, then Rs 10,000 limit), customers of HDFC Bank, Kotak Mahindra Bank, IDFC and Yes Bank were actually scared.

Journalists too faced this issue, as reported on social media, and else where, and there was actually panic.

RBI Says: No Need To Worry, It’s A Technical Issue

The rumors started to reach a mass-scale, and RBI had to intervene.

They tweeted at 3 PM that these banks are facing technical issues, and there is no need to panic.

Their Tweet said: “RBI would like to assure the general public that Indian banking system is safe and stable and there is no need to panic on the basis of such rumours.”

There are rumours in some locations about certain banks including cooperative banks, resulting in anxiety among the depositors. RBI would like to assure the general public that Indian banking system is safe and stable and there is no need to panic on the basis of such rumours.

— ReserveBankOfIndia (@RBI) 1 October 2019

This Affected Stock Market As Well

The effect of rumors had some sort of presence in the stock market as well.

Stocks of these banks faced sudden drop, as customers shared their complaints on social media. 

Although shares of HDFC Bank closed at 1.74% up compared to yesterday, YES Bank closed at 22.8% lower.

IDFC faced a sudden dip of 4.85%, whereas Kotak Mahindra Bank was down by 5.5 points.

We will keep you updated, as more details come in.