HDFC Bank can now issue new credit cards; shares rise

Mumbai, Aug 18 : The Reserve Bank of India (RBI) has relaxed the restrictions on HDFC Bank and allowed the lender to issue new credit cards.

However, the restrictions on all new launches of the digital business generating activities planned under 'Digital 2.0' will continue till further review by RBI.

"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," HDFC Bank said in a regulatory filing.

The bank said that it will continue to engage with RBI and ensure compliance on all parameters.

In December 2020, RBI directed asked HDFC Bank to temporarily stop all launches of the 'Digital Business generating activities and sourcing of new credit card customers on certain incidents of outages in the Internet banking, mobile banking and payment utilities of the bank over the past two years.

Shares of the bank surged on the back of the relaxation. Around 10.45 a.m., its shares on the BSE were trading at Rs 1,541.80, higher by Rs 26.95 or 1.78 per cent from its previous close.