HDFC Bank’s Managing Director and Chief Executive Officer Shashidhar Jagadeesan had said that the bank has completed 85 percent compliance with the Reserve Bank of India (RBI) instructions related to technology.
The central bank RBI has removed the restriction related to digital services, giving a big relief to the largest private bank HDFC. According to the report of the news agency Reuters, a spokesperson of the bank has confirmed this. In the last two years, due to technical glitches on the bank’s platform on a number of issues related to digital banking, cards and payments, the RBI took action and barred the bank from issuing new credit cards and launching any new digital product.Also Read: SBI launches new website for pension account holders, you will get many benefits
HDFC Bank is at the top in terms of issuance of credit cards in India. But since December 2020 itself, due to the ban on issuing new credit cards to the bank, its market share has reduced. Credit card outstanding declined to 14.9 million in May 2021 from 15.4 million in November 2020. However, in the last week of June, the bank has claimed to compensate it in future.
The CEO of the bank had expressed hope
Last month, HDFC Bank’s Managing Director and Chief Executive Officer (CEO) Shashidhar Jagadeesan had said that the bank has completed 85 per cent compliance with the Reserve Bank of India’s (RBI) directives related to technology. He hoped that the ban on issuing new credit cards by the RBI would be lifted soon.Also Read: Indira Gandhi Urban Credit Card Scheme: Unemployed will get loan of Rs 50,000, will not have to pay interest
The ban was imposed from December 2020 itself.
HDFC Bank was facing technical problems for the last few years. In December 2020, due to technical glitches, the Reserve Bank had banned the bank from introducing new credit cards or new digital products. Here, the bank says that since its inception, we have led the digital transformation of the Indian financial services sector and continue to invest in technology to improve customer experience and enhance efficiency. This is changing the paradigm by redefining financial services and designing products and services with the customer always at the center.
Banks preparing to take a big leap
HDFC Bank, the country’s largest private bank, is preparing to make a big leap in the digital and enterprise unit. HDFC Bank has decided to reinstate 500 youth under special projects to improve IT infrastructure in the next two years. This will include data analysts, specialists related to artificial intelligence and other technical services.Also Read: Railways going to start special trains between these cities, check complete details here
The bank is going to set up a ‘Digital Unit’ and an ‘Enterprise Unit’ to introduce new digital products and services and enhance its IT (Information Technology) infrastructure in future. These units are part of the technology transformation to run the bank and bring about changes over time.
Bank to strengthen IT infrastructure
According to the information provided by the bank, Enterprise Factory will upgrade the old infrastructure, decouple the existing systems and build its capabilities by adopting open-source to create flexibility and scale. The bank said that it will recruit 500 people with experience in various technical fields in the next two years. This includes areas such as data analyst, artificial intelligence, machine learning, design, cloud etc.Also Read: 50% off on OnePlus 9, see where the phone is getting so cheap
The bank is also developing future ready technologies and moving towards an indigenous cloud architecture in collaboration with leading technology companies, fintechs and large IT companies. Ensuring reliability, availability, scalability and security will be given special importance in the efforts of the digital unit.
