Tag: hdfc bank

HDFC Bank launches festive offers, partners with over 10,000 merchants, BFSI News, ET BFSI

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Private lender HDFC Bank on Tuesday said that it has partnered with over 10,000 merchants for its Festive Treats 3.0 campaign, a near 10 fold increase from 2020. Customers can choose from 10,000 offers on cards, loans and easy EMIs.

“As India unlocks, we are also trying to spread a little cheer in the lives of people and help the overall national economic good,” said Arvind Kapil, Group Head – Retail Assets, HDFC Bank. “This is reflected in our range of offers spanning Personal loans, Car loans, two-wheeler loans as well as the Business Loan & working capital loans for really small businesses.”

Some of the key national partners include Apple, Amazon, Shoppers Stop, LG, Samsung, Sony, Titan, Central, Ajio, Reliance Digital, Reliance Trends, Lifestyle among others.

The bank will use its ATM, branch network, partnerships with stores & websites and digital media campaigns to reach its customers.

“Our range of offers on credit cards is not just about coming back with a bang. It is about spurring India’s consumption story,” said Parag Rao, Group Head – Payments, Consumer Finance, Digital Banking, and IT, HDFC Bank. “We are encouraged to do this since about one-third of spends on credit, debit and prepaid cards in India happens on an HDFC Bank card.”

The bank said it has a cash back offer of Rs Rs 6,000 on iPhone 13. It is also offering upto 22.5% CashBack & No Cost EMI on electronics & consumer goods like washing machines and refrigerators.

The bank will offer personal loans starting at 10.25% with instant disbursal in customers account. Its car loans will start at 7.50% with Zero Foreclosure charges.

It is also giving options of funding of up to 100% on two-wheeler loans and 90% funding on tractor loans with zero processing fee.

“This has been one of the most challenging periods for people due to the pandemic. Festive Treats 3.0 is not just about spending for oneself but also about helping others, Festive purchases will benefit many others employed in small businesses and create a chain of recovery across the spectrum,” said Ravi Santhanam, CMO, Head -Corporate Communications, Liability Products & Managed Programs, HDFC Bank.



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Banks step up credit card sales, offers in festive season as BNPL threatens, BFSI News, ET BFSI

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With the Covid pandemic weakening and consumer confidence rising, banks are betting on credit card spends this festive season. Lenders have launched a slew of new credit cards and offers to solidify their positions and grab a bigger share of the market.

The credit card push comes at a time when buy now-pay later (BNPL) products have become popular with consumers. BNPL essentially offers around 15 days of interest-free funds to small borrowers and are seen as competitors of credit cards.

SBI offering

Banks step up credit card sales, offers in festive season as BNPL threatens

SBI Card is luring consumers with 10% cashback up to Rs 10,000 across mobiles, consumer durables, laptops, kitchen appliances, home décor & furnishing, and fashion & lifestyle purchases, done at leading domestic e-commerce shopping sites. The offerings are not restricted to just one or two e-commerce portals

However, the offer will not be applicable on online spending in some categories such as insurance, travel, wallet, jewellery, education, healthcare, and utility merchants.

HDFC Bank

Banks step up credit card sales, offers in festive season as BNPL threatens

HDFC Bank and digital payments firm Paytm will launch a range of credit cards powered by Visa this month. The partnership aims to provide one of the widest range of offerings across customer segments, with special focus on millennials, business owners and merchants. Under the partnership announced in August, the two will build comprehensive solutions across payments gateway, point of sale machines, and credit products.

The cards announced today will be customised to meet the distinct needs of retail customers, from new-to-credit users to affluent users and offer rewards and cashback for users. The new cards offering will also facilitate small business owners.

Federal Bank cards

Banks step up credit card sales, offers in festive season as BNPL threatens

Kochi-based private lender Federal Bank entered the credit card business in September in association with card network Visa. The bank has partnered with National Payments Corp of India to launch ‘Federal Bank RuPay Signet Contactless Credit Card,’ according to a press release.

The card’s annual percentage rate starts from 5.88% per annum. Cardholders will gain access to a wide range of offers and deals across categories including travel, food, among others, the bank said. The card is currently being offered to existing customers of Federal Bank.

According to the Reserve Bank of India (RBI), the total number of credit cards stood at 63.4 million at the end of July.



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Only 60% banks ready with new auto debit system, customers to face inconvenience, BFSI News, ET BFSI

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Bank customers are set to face disruptions in their auto debits after new RBI norms kicked in on Friday as only about 60% of banks are ready with the new system.

Private sector lenders, including HDFC Bank, ICICI Bank, Citibank, Axis Bank, IDFC Bank are ready with the new systems. IndusInd Bank, Bank of Baroda, RBL Bank and YES Bank are also set to meet the deadline.

However, public sector banks are still working on putting the new system in place.

Dashing messages

Banks are sending communications to customers saying that they will not process the recurring payments and customers will have to make payments directly to merchants. Below are some text messages received by customers:

> “Attention! From 1st Oct’21, as per RBI guidelines on e-Mandate on cards, we will decline Non Compliant recurring txn at Merchant Web/App on your Credit/Debit Card. Alternate Solution – Retry regular payment on Merchant Web/App authenticated via OTP or Pay via AutoPay in BillPay on our NetBanking for your Electricity /Water/Gas/ Landline/Postpaid mobile/Broadband/Insurance billers,” said a message to customers by HDFC Bank.

> “In compliance with the regulatory requirements, we are currently building a solution to seamlessly manage all your domestic standing instructions for recurring payments. This solution will be available soon for you. Starting October 1, any existing standing instruction for domestic and international recurring transactions on your card account will not be processed. We request you to make these payments directly to the service providers to avoid any interruptions,” American Express said in a recent message to customers.

How does the new system work?

Under the proposed system, as a risk mitigating and customer facilitation measure, the card-issuing bank will have to send a pre-transaction notification to the cardholder, at least 24 hours before the actual charge or debit to the card. While registering e-mandate on the card, the cardholder shall be given the facility to choose a mode among available options (SMS, email, etc.) for receiving the pre-transaction notification from the issuer. On receipt of the pre-transaction notification, the cardholder shall have the facility to opt-out of the particular transaction or the e-mandate. For transactions above Rs 5,000, banks will also be required to send one time passwords to customers.

What is a standing instruction?

A standing instruction is a service offered to customers of a bank, wherein regular transactions that the customer wants to make are processed as a matter of course instead of initiating specific transactions each time.

This service relates to transactions like renewing subscription to OTT platforms, newspapers and magazines, and utility bill payments.

The issue

Large lenders and payment entities including State Bank of India, ICICI, Citi, HDFC, Axis, HSBC, Visa and Mastercard had asked the Reserve Bank of India (RBI) to postpone the deadline for putting in place a new system to alert customers on ‘standing instruction’ transactions.

The banks were asked to set up the system by March 31, 2021.

The lenders also wanted RBI to exclude transactions against pre-existing standing instructions and those with international merchants from the new conditions for e-mandates on cards for recurring transactions.



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HDFC Bank, BFSI News, ET BFSI

Banking & Finance

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Mumbai: HDFC Bank has said that as a practice it levies processing fees on customers attempting to avail loans with discrepant or suspect documents. However, it has denied reports that these cases are not reported on the bank’s fraud reporting system.

“The bank does not waive the processing costs from customers who come forward in such discrepant/suspicious cases. The processing fee is charged towards defraying the cost of efforts of the bank for additional due diligence and verification and not for closing the cases,” HDFC Bank said.

Responding to reports that frauds are not reported by the bank, the private lender said that in all cases, the bank updates its internal database to prevent any future application from the customer and also updates industry data to prevents such borrowers from indulging in similar practises with other banks, NBFCs & financial institutions. “Collection or non-collection of processing fees has no bearing on reporting to the internal & Hunter (industry) database or attempts to report to the police authorities,” the bank said.

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HDFC Bank’s additional masala bonds get listed on NSE IFSC’s platform, BFSI News, ET BFSI

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NSE International Exchange (NSE IFSC) on Friday said it has listed HDFC Bank‘s additional masala bonds on its debt securities market platform. NSE IFSC is a wholly-owned subsidiary of the National Stock Exchange (NSE).

The private lender’s additional Tier 1 (AT1) masala bonds got listed on the debt securities market platform.

“HDFC Bank has raised Rs 739 crores under USD 3 Billion Medium Term Note Programme,” NSE IFSC said in a release.

Since the launch of NSE IFSC Debt Securities Market (DSM), it has listed total aggregate medium-term notes worth over USD 31 billion and listed bonds worth more than USD 17 billion, it added.

This also includes USD 1.75 billion worth of green and sustainable bonds.

NSE IFSC launched DSM for listing and trading of debt securities in multiple foreign currency bonds, green bonds, masala bonds, notes, among others, on March 16, 2018. PTI SRS BAL BAL



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HDFC Bank raises Rs 739 crore via masala bonds, BFSI News, ET BFSI

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HDFC Bank on Thursday said it has raised Rs 739 crore by issuing the rupee-denominated masala bonds in the overseas markets. HDFC Bank has issued and allotted rupee-denominated bonds overseas on September 30, 2021, the lender said in a regulatory filing.

The private sector lender will use the proceeds from the issue for banking activities.

The subordinated additional tier I bonds are compliant with Basel III norms.

The perpetual bonds, which are unrated and unsecured, carry a coupon rate of 7.55 per cent.

The notes (bonds) will be listed on the India International Exchange (IFSC) Ltd and NSE IFSC, it said.

Perpetual bonds carry no maturity date, so they may be treated as equity, not as debt.

The rupee-denominated bonds, popularly known as “masala” bonds are instruments that are issued outside India, not in the local currency but the Indian rupee.

In November 2016, the RBI had allowed banks to raise funds by floating the rupee-denominated bonds in overseas markets as part of an additional avenue to raise long term funds. Shares of HDFC Bank closed at Rs 1,595.50 apiece on BSE, up 0.14 per cent from the previous close.



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HDFC Bank, HDFC Securities invest $1 million in Borderless Softtech, BFSI News, ET BFSI

Banking & Finance

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HDFC Bank and HDFC Securities invested USD 1 million (about Rs 7.4 crore) in Borderless Softtech, which runs global investment platform Stockal, as part of Pre-Series A funding. Borderless Softtech is a subsidiary of US-based Borderless Investing Inc.

This partnership will widen the company’s subscriber base by expanding growth opportunities to allow Indian investors to get access to over 5,500 US-listed companies fractional stocks and ETFs, according to a release issued by Stockal on Thursday.

The company is planning to utilise the funding to turbocharge its growth, making it a platform of choice for Indian investors.

“This funding will enable thousands of Indian investors to get exposure to opportunities offered by the global markets as we further expand our capabilities to markets in South-East Asia and Europe,” Vinay Bharathwaj, Co-CEO and co-founder of Stockal, said.

Smita Bhagat, Country Head, HDFC Bank, said the funding decision was based on the strength and resilience the Stockal platform has shown in India, especially in the past few months.

Borderless Investing Inc’s brand Stockal has revolutionised the US investments space by offering seamless digital trading solutions to Indian investors since its inception.

In terms of volumes, Stockal processed about USD 550 million in transactions during this financial year and by March 2021, the platform processed more than USD 50 million in monthly transactions. PTI SP BAL BAL



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Auto debit instructions won’t work from tomorrow, banks ready new system, BFSI News, ET BFSI

Banking & Finance

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From tomorrow, your standing instructions for bill payments to your bank won’t be honoured, till the bank develops an alternate system.

A huge number of credit and debit card users set auto payment instructions for utility services ranging from electricity and gas and subscription services for music, movies and other media. The new rules may lead to lead to chaos for millions of users.

Dashing messages

Banks are sending communications to customers saying that they will not process the recurring payments and customers will have to make payments directly to merchants.

“Attention! From 1st Oct’21, as per RBI guidelines on e-Mandate on cards, we will decline Non Compliant recurring txn at Merchant Web/App on your Credit/Debit Card. Alternate Solution – Retry regular payment on Merchant Web/App authenticated via OTP or Pay via AutoPay in BillPay on our NetBanking for your Electricity /Water/Gas/ Landline/Postpaid mobile/Broadband/Insurance billers,” said a message to customers by HDFC Bank.

Banks and payment aggregators are rushing to meet the October 1 deadline for implementing a new system for standing instructions for recurring online transactions as RBI may not extend it.

“In compliance with the regulatory requirements, we are currently building a solution to seamlessly manage all your domestic standing instructions for recurring payments. This solution will be available soon for you. Starting October 1, any existing standing instruction for domestic and international recurring transactions on your card account will not be processed. We request you to make these payments directly to the service providers to avoid any interruptions,” American Express said in a recent message to customers.

How does the new system work?

Under the proposed system, as a risk mitigating and customer facilitation measure, the card-issuing bank will have to send a pre-transaction notification to the cardholder, at least 24 hours before the actual charge or debit to the card. While registering e-mandate on the card, the cardholder shall be given the facility to choose a mode among available options (SMS, email, etc.) for receiving the pre-transaction notification from the issuer. On receipt of the pre-transaction notification, the cardholder shall have the facility to opt-out of the particular transaction or the e-mandate. For transactions above Rs 5,000, banks will also be required to send one time passwords to customers.

What is a standing instruction?

A standing instruction is a service offered to customers of a bank, wherein regular transactions that the customer wants to make are processed as a matter of course instead of initiating specific transactions each time.

This service relates to transactions like renewing subscription to OTT platforms, newspapers and magazines, and utility bill payments.

The issue

Large lenders and payment entities including State Bank of India, ICICI, Citi, HDFC, Axis, HSBC, Visa and Mastercard had asked the Reserve Bank of India (RBI) to postpone the deadline for putting in place a new system to alert customers on ‘standing instruction’ transactions.

The banks were asked to set up the system by March 31, 2021.

The lenders also wanted RBI to exclude transactions against pre-existing standing instructions and those with international merchants from the new conditions for e-mandates on cards for recurring transactions.



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HDFC Bank issues 4 lakh credit cards post-RBI ban

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The bank will relaunch its Millennia, MoneyBack+ and Freedom cards, to which it has added a host of new features and benefits.

HDFC Bank has issued 4 lakh credit cards since the Reserve Bank of India (RBI) lifted a regulatory embargo on issuance of new cards by the lender in August. The largest private bank by assets plans to relaunch three credit card products, which will be available to customers in October, it said on Wednesday.

The bank will relaunch its Millennia, MoneyBack+ and Freedom cards, to which it has added a host of new features and benefits. Creating and co-creating new card products is part of the bank’s strategy to straddle every customer segment across the Indian market, said Parag Rao, group head – payments, consumer finance, digital banking & IT, HDFC Bank.

The bank also plans to partner with other entities to expand its customer base. Last week, HDFC Bank had announced a strategic tie-up with Paytm to deliver financial solutions to consumers and merchants across the country.

“We looked at our existing 15 million customers and how we could show them much more value. We are thankful to these customers for being with the bank and we would like to reward them by revamping and relaunching a couple of our products so that they get far more value than before,” Rao said.

The Freedom card is targeted at consumers who have just started earning and are used to making online purchases. Meant for first-time job-seekers, it will offer credit limits ranging between Rs 15,000 and Rs 50,000. The MoneyBack+ credit card is aimed at middle-class families seeking value on their everyday spends. The Millennia card is meant for the affluent, tech-savvy consumer in the age group of 25 to 40 years. The refashioned card will offer cashbacks on spends on shopping, dining, entertainment and travel.

“Our research over the last 15-20 years and a lot of customer feedback tells us that once you cross the first three-four years of credit card usage, your requirements become more fine-tuned and sharper. Some customers love reward points, some love cashbacks, discounts and deals,” Rao said. Over the next three to four quarters, HDFC Bank will gain back its market share in the number of cards in force, he added.

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HDFC bank issues 400,000 credit cards after embargo, BFSI News, ET BFSI

Banking & Finance

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After the embargo on HDFC Bank was lifted last month, they have issued over 400,000 credit cards, a report by the Business Standard says.

This signifies the aggressive growth that the private lender has made since then. This record issuance is as of September 21, 2021.

HDFC Bank was looking to get back to its pre-embargo run rate of 300,000 credit cards per month, which they had planned to achieve in the next 2-3 months. After that, they expected to hit 500,000 credit cards per month from February 2022.

“As a leader in the cards space, we promised, we’d be back with a bang. We are now pushing the pedal not only to acquire new customers, but also to enhance offerings of our existing cards,” the Business Standard report quoted Parag Rao, group head – Payments, Consumer Finance, Digital Banking & IT, HDFC Bank, as saying.

The bank expects to achieve growth in the credit cards business on the back of new alliances with a number of industrial sectors.

Pre-embargo, the open market customer acquisition was less than 20 per cent, which may now go up to 22-24 per cent, the bank has indicated. This is because the bank is coming up with several new initiatives in the upcoming months which include co-branded cards with corporate India spanning pharma, travel, FMCG, hospitality, telecom, and fintech.

“Our strategy to re-invent, create and co-create has been crafted based on the analysis of customers’ buying behaviour, the categories they spend on and the spend patterns. The months that we have spent readying and sharpening our strategy are now bearing fruit. We are ready to unveil best in class offerings and experience to our customers, just in time for festive season,” he added.

As of July (latest data), HDFC Bank has 14.76 million credit cards in the market. Its market share in outstanding credit cards dropped by more than 2 per cent due to the restrictions imposed by the regulator.



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