HDFC Bank on New Credit card ban Updates 2021

HDFC Bank Credit card ban: HDFC Bank was the market leader in this area. Along with this, the bank was also banned in December 2020 from bringing any kind of new digital offering.

HDFC Bank Credit card ban: HDFC Bank Managing Director and Chief Executive (CEO) Shashidhar Jagadeesan said that the bank has completed 85 percent compliance with the Reserve Bank of India (RBI) instructions related to technology. The ball is now in the court of the Reserve Bank to remove the ban on issuing new credit cards (HDFC Bank credit card). According to the news of PTI, Shashidhar Jagdishan (Shashidhar Jagadishan) while addressing his first annual general meeting as the executive head of the country’s largest private sector bank said that the investigation regarding technology has been completed. The central bank will now independently consider the timing of removal of punitive action taken against the bank.

In December 2020, the bank was banned from issuing credit cards

Due to technology-related lapses in HDFC Bank, the Reserve Bank in December 2020, taking action against the lender, prohibited the issuance of new credit cards by it. HDFC Bank was the market leader in this area. Along with this, the bank was also banned from bringing any kind of new digital offering.

The bank is sure that at some point, RBI will lift the moratorium

According to the news, Jagdishan said that following the advice and guidelines of the Reserve Bank, we have set an example in terms of our action on technology. By this time we have completed a major part. About 85 percent of what was expected of us has been completed. He said that the ball is now in the court of the regulator. As they see fit, as they see that we are on the right track, I am sure that at some point, they will lift the bar.

Credit cards in the market

In December 2020, when HDFC Bank was banned for issuing credit cards, private sector ICICI Bank was at the forefront with a market share of 70 percent in the same month. But according to a report, the market share of ICICI Bank declined by 38 percent in the next month i.e. January 2021. Apart from this, SBI Card and Axis Bank were ahead in issuing new credit cards.