- RBI issued an order against HDFC bank pertaining to their sloppy services
- The bank is restrained to work on its new digital banking initiative until it fixes the current glitches
If you are a HDFC customer you might have experienced problems in online money transactions through your bank account. These issues have been in the bank’s system for around two years now.
As a reaction to these issues, on December 2, RBI issued an order against HDFC bank to halt some of its activities till these issues are resolved.
With speculation of the bank getting banned for 6 months, HDFC is in a lot of trouble lately.
What are the problems faced by HDFC customers?
Due to the series of issues caused at the banks end a lot of inconveniences have been caused to the millions of its internet banking customers.
There are a lot of problems in making UPI transactions since a lot of customers are complaining about the transactions getting failed. They are also grumbling over the lousy customer service which requires them to wait in queues for a telephone call with customer care.
Recently, on 21 November, a power failure at the bank’s primary data center caused problems in the bank’s internet banking and payment system.
What order has RBI imposed on HDFC?
HDFC Bank Ltd has been ordered to suspend the launch of its new digital banking initiatives. Till the glitches are fixed, the bank will also have to hold the supply of credit card issuance.Â
RBI deputy governor M.K. Jain told that a regulator assigned a team of experts to investigate the HDFC bank’s activities after last December one of its customers complained about not being able to pay loans or settle credit card bills.
These orders will be lifted once RBI is satisfied with the repairs done by the bank.
What HDFC bank has to say?
HDFC Bank had assured its customers that these orders are not going to affect them in any way.
The bank has also justified that the outage was caused because of the misjudgment in the volume of payments and not because of any cyber attack.
“The bank has been taking conscious, concrete steps to remedy the recent outages on its digital banking channels and assures its customers that it expects the current supervisory actions will have no impact on its existing credit cards, digital banking channels and existing operations,” it said.
There has been a steep increase in the graph of users turning to online transactions. For instance, around 95% of HDFC bank customers have started using the internet and mobile banking in FY20.
In such a situation, it is becoming more important to regulate all the bank’s online services to maintain the trust of the customers. Experts are saying that through the HDFC Bank order, RBI might be giving a hint to other banks that it is not going to tolerate any impetuous services from them.
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