HDFC Bank gets permission to issue new credit cards, shares jump
- The ban on HDFC Bank has been lifted.
- Issuance of new credit cards has been permitted.
- This was followed by HDFC Bank shares rising 3.3%.
New Delhi: Shares of HDFC Bank rose 3.3% on Wednesday (August 18) after the Reserve Bank of India allowed the issuance of new credit cards. On NSE, HDFC Bank shares rose to a high of Rs 1,565.35 as compared to its previous closing price of Rs 1,514.65. The banking regulator had partially lifted its technical ban on HDFC Bank on August 17. The central bank has allowed HDFC Bank to issue new credit cards, according to a letter sent to the bank on August 17.
HDFC Bank told the stock market that we would like to inform you that the RBI has relaxed the restrictions imposed on the issuance of new credit cards through a letter dated August 17, 2021. HDFC Bank further said that restrictions on new offerings under Digital Business Activities planned under Digital 2.0 will continue till further review by RBI. The bank said that we will continue to work closely with the RBI and ensure compliance on all standards.
HDFC Bank said that the RBI has given relief in restrictions imposed on the bank for issuing new cards. The RBI had issued orders in December and February prohibiting issuance of new credit cards due to some incidents of disruption in HDFC Bank’s internet banking, mobile banking and payment services in the last two years.
However, the ban on all new launches of the bank planned under Digital 2.0 will continue. The bank said in the statement that the ban on all new launches of 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.
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