1 min read.Updated: 03 Dec 2020, 11:23 PM ISTLivemint
With digital transactions fast becoming the norm for an ever-increasing proportion of account holders, and people being nudged online, it’s vital that e-facilities can always be relied upon
It isn’t often that we see our banking regulator go beyond imposing token fines. But the Reserve Bank of India’s (RBI) curbs on HDFC Bank, temporarily barring it from enrolling new credit card customers and launching new digital services, suggests it’s ready to wield a big stick on behalf of the consumer. RBI’s action was taken in response to the bank’s net banking and payment facilities snapping off too frequently, in its assessment, over the past two years.
It’s important for the regulator to hold banks to account for quality of digital services at a time when the scale of digital payments is expanding rapidly. The infrastructure underpinning both our shared digital payments pathways as well as bank applications serving end customers must be reliable and secure at all times. This is critical to secure people’s faith in digital payments.
Even a brief denial of access to one’s own money tends to evoke anxiety. It’s a problem across the sector, though. Tech systems cannot be made fail-proof but the tolerance for downtime needs to be minimal in the banking sector. RBI has rightly sent a strong signal on digital services.