Credit card news: HDFC Bank issues BIG update - Check details

The Reserve Bank of India has permitted HDFC Bank Ltd. to issue new credit cards, partially lifting a months-long restriction on the lender.

HDFC Bank has stated that it is fully prepared for resumption of credit card rollout services. The bank said as per a regulatory filing, “… we wish to inform you that the RBI vide its letter dated August 17, 2021, has relaxed the restriction placed on sourcing of new credit cards. The board of directors of the bank has taken note of the said RBI letter”.

The RBI banned the country's most valuable lender about eight months ago for continuous internet problems that impacted its 50 million customers. The central bank, however, has not revoked the ban on HDFC Bank offering new digital products.

To strengthen its online infrastructure and handle a higher transaction volume, the bank is establishing digital and enterprise units.

Following the restriction, HDFC Bank lost almost 1% of its market share in business, although it still accounts for roughly a fourth of all credit card transactions. During this time, SBI Card, ICICI Bank, and Axis Bank have made progress.

HDFC has issued 1.5 crore credit cards to its five crore customers. While the credit gap will persist due to the bank's credit policy, senior executive Parag Rao claims that there has been a significant increase in the client base, resulting in pent-up demand.