RBI appoints an external firm to audit HDFC Bank’s IT infrastructure

HDFC Bank informed the stock exchanges on Tuesday that the Reserve Bank of India (RBI) has appointed an external professional IT company to perform a special audit of its entire IT infrastructure.

The bank had been sanctioned by the RBI for repeated service disruptions in internet banking, mobile banking and payment services.

In a notification to the exchanges, the bank said: “… RBI appointed an external professional IT firm to perform a special audit of the entire IT infrastructure of the bank under section 30 (1-B) of the Banking Regulation Act 1949. (“The Law”), at the expense of the bank under Article 30 (1-C) of the Law “.

He added: “The bank will, accordingly, extend its cooperation to the external professional IT firm so appointed by the RBI to carry out the special IT audit.”

In December of last year, thwarted by repeated service disruptions, the RBI asked HDFC Bank to temporarily halt all of its digital launches as well as new supplies of credit card customers.

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After this action by the RBI, the management of the private lender issued a statement to its clients, apologizing for sometimes not being able to meet their expectations. But he told clients he had brought in outside experts before and figured out what to do. It has also significantly implemented inputs to strengthen IT infrastructure and systems.

The bank then submitted an action plan last month to the RBI, detailing the steps it is taking to address the issue. HDFC Bank said it hopes to improve its technology platform in three months. The plan is supposed to be implemented in 10 to 12 weeks, management said last month at an analysts meeting.

The actions taken by the RBI against the bank will be lifted once it is satisfied that the bank is in compliance with the main critical observations made by the RBI.

At the last monetary policy meeting (December), RBI Governor Shaktikanta Das said, “We cannot put thousands or hundreds of thousands of customers, who use digital banking, in trouble for decades. hours together. This is especially when we ourselves attach so much importance to digital banking. “

He further added that HDFC Bank has an overwhelming presence in the online banking segment. “We have some concerns about certain deficiencies (in the bank). Therefore, HDFC Bank needs to strengthen its security and IT systems before expanding further.

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