After RBI action on outages, HDFC Bank CEO steps in to allay customer fears–economic times

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RBI on Thursday asked HDFC Bank to temporarily halt new digital offerings and stop sourcing credit card customers.

HDFC BankNSE -2.11 % CEO Sashidhar Jagdishan on Thursday assured existing clients of the bank and said that they could continue to transact with the bank without any concern. Jagdishan also said that the bank with comply with the regulator’s diktat.

RBI on Thursday asked HDFC Bank to temporarily halt new digital offerings and stop sourcing credit card customers.

“Many of you may have read or heard about the RBI order asking us to temporarily stop any new digital banking launches and sourcing of new credit card customers. We will comply with the regulator’s requirements,” Jagdishan said in a note to customers. “We take this opportunity to assure our existing customers that there is no reason to worry. You can continue to transact with the Bank without any concern.”

Jagdishan also offered apology for the recent outages that the bank has faced.

“We realize that as our valued customer, you expect us to maintain a very high standard of service quality and experience,” he wrote. “And sometimes, we have not been able to live up to your expectations. For that, please accept our sincere apologies.”

The bank faced its first big outage in November 2018 while upgrading its mobile application and internet banking. A year later it faced its second outage in December 2019, forcing RBI to send its team to study the issues that the lender was facing. Since then the bank has taken steps to strengthen its IT infrastructure and systems.

Unexpectedly another incident happened on November 21,2020 and the primary reason for the collapse was power outage in its Primary Data Centre.
“We are working on war footing to strengthen this area also now,” Jagdishan told customers.

He also stated that some of the bank’s digital offerings will be launched once the regulator gets approval from RBI.
“Some of our strategic digital initiatives to improve the front end digital experience, improve digital origination, straight through processing, next generation of mobile and internet banking, APIs based banking on the edge etc would now be readied and launched post the approval and clearance from regulator,” he said.

Jagdishan assured customers that the bank will work with the experts and the regulator to fortify the identified areas for improvement.

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