Private lender,
HDFC Bank has finally received the RBI's approval for sourcing new credit cards after a ban that was an outcome of series of outages in digital services.
In its regulatory filing, HDFC said that RBI has relaxed the restriction placed on sourcing new credit cards. The Board of Directors of the Bank has taken note of the said RBI letter.
HDFC Bank said, "The restrictions on all new launches of the Digital Business generating activities planned under Digital 2.0 will continue till further review by RBI. We will continue to engage with RBI and ensure compliance on all parameters."
Last year, in December, RBI asked HDFC Bank to temporarily stop i) all launches of the Digital Business generating activities planned under its program ‐ Digital 2.0 (to be launched) and other proposed business generating IT applications and (ii) sourcing of new credit card customers.
While sourcing new credit cards have been allowed now to HDFC Bank, new digital launches and other proposed business generating IT applications are yet to receive clearance.
Earlier this year, RBI had even appointed an external professional IT firm for carrying out a special audit of the entire IT infrastructure of the Bank.
HDFC Bank has been closely working with the external professional IT firm.
RBI's direction was due to certain incidents of outages in the internet banking/ mobile banking/ payment utilities of the Bank over the past 2 years.
With the approval on sourcing new credits, investors are upbeat on HDFC Bank stock as they expect other services to get RBI nod soon too.
On Sensex, HDFC Bank stock has gained by over 3% with an intraday high of Rs1564.75 per piece in early deals. The stock continues to trade bullish and is among the top gainers on exchanges.
At around 10.53 AM, HDFC Bank is trading at Rs1535.05 per piece up 1.3% on Sensex. At the current market price, HDFC Bank's market valuation stands over Rs8.49 lakh cr.