The quality of digital banking services has come into questioning following the regulatory action by the RBI on HDFC Bank. Similarly, the State Bank of India’s YONO app has also been facing technical glitches for the last two days, causing inconvenience for the users, who are complaining that they are unable to even log in.

Other banks in India have also experienced similar problems. Although these glitches mostly get resolved in a few hours. But the frequency of these is something to get concerned about. They create problems for customers, many of whom are unable to visit bank branches due to the Covid-19 pandemic. According to Vishwas Patel, Executive Director, Infibeam Avenues, and Chairman, Payments Council of India. It is a tragedy waiting to happen, as none of the Indian banks’ core banking systems (CBS) are prepared to take the load. For example, every UPI transaction hits the banks’ CBS. The high rates of transaction failures and pile-ups in credit reversal dues trigger an alarm in several banks, with their outdated digital infrastructure being unable to handle this sudden surge.

According to the experts, a large number of technical glitches such as these occur when the usage of these e-services exceed the capacity handled by the servers. Banks need to work on their IT systems, given the load generated by the traffic generated by the users transitioning to online services following the pandemic.