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RBI appoints external firm to conduct an IT audit on HDFC Bank

The Reserve Bank of India (RBI) has appointed an external IT firm for conducting an audit of HDFC Bank, for carrying out a special audit of the bank's entire IT infrastructure, according to an exchange filing. Over the past two years, the bank has faced several issues with their digital banking services, most recently a power failure at their primary data centre in Mumbai. In December, the RBI imposed sanctions on HDFC Bank instructing the bank to examine the lapses, fix accountability and stop any further business in credit cards and digital banking products. Two years ago, when the bank was launching its new mobile banking app, there was an issue with its roll-out, which forced the bank to pull it back and restore an older version. In December 2019, there was a “technical glitch” that led to the banks’ customers unable to log-in to the internet banking platform and mobile banking app. Earlier last month, the bank's management said that they had laid out various action plans which would transition the bank to a more stable environment over the course of a year or more. The majority of the bank's network upgrade would take 10-12 weeks to implement while others are more long term, they said. In the filing, HDFC Bank said that it will extend its cooperation to the external professional IT firm appointed by RBI for conducting the special IT audit. As the country’s second largest bank, HDFC Bank’s network is expansive with over 56 million customers,…

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