SOURCE : NEW18 NEWS
Last Updated:April 21, 2025, 17:51 IST
The RBI questioned banks on the need for multiple apps targeting the same customers after technical glitches caused inconvenience. They suggest streamlining for better efficiency
The RBI believes that having multiple apps by the same bank wastes resources, leading to duplicated efforts in technical teams, funding, and marketing. (Representative/Shutterstock)
The Reserve Bank of India (RBI) has raised an important issue with the banks in the country regarding the necessity of launching multiple apps for a single bank, targeting the same customer segment. The central bank is seeking clarity on whether it is essential for a bank to create numerous apps for the same set of customers.
According to a report by Moneycontrol, RBI recently inquired about this from several banks, especially after a series of technical glitches plagued many banking apps in recent months, causing significant customer inconvenience.
related stories
Though the RBI has not yet made an official statement or responded to Moneycontrol’s email, sources indicate that the central bank has subtly suggested banks reconsider this repetitive strategy. Banks have been given until June to respond.
A senior banker pointed out that not only is the technical investment split between the main banking app and the new apps, but customer experience also suffers. He added that customers often find themselves confused about which app to download, where to open an account, and which one to use for transactions.
Big banks in the country like Kotak Mahindra, IndusInd Bank, and HDFC Bank have multiple apps for the same customer base. For instance, Kotak has Kotak Bank and Kotak 811, IndusInd has IndusInd and Indie, and HDFC has HDFC Bank and PayZapp. These apps, aimed at retail customers, offer similar features and services. The RBI believes this approach wastes resources, leading to duplicated efforts in technical teams, funding, and marketing, while also confusing customers.
Around four to five years ago, some banks began to focus on the “digital bank” theme during the digital revolution, launching new apps as separate units to enhance their market valuation and identity. However, it appears the RBI now strongly disagrees with this strategy, urging banks to streamline their efforts for better efficiency and customer clarity.
