One of India’s largest private sector banks, HDFC Bank reported six to percent of its annual budget is spent on technology-related costs.

The bank's head of payments and consumer finance, Parag Rao said how it has been pouring monetary funds into digital capabilities ‘cloudification’, or shifting tasks to the cloud.

Rao said half of the monetary funds are allocated for spending on employees, while the remaining is spent on hardware,software, and maintaining the network.

Also, HDFC Bank was known to be the first biggest lender to face challenges around restriction of issuing new credit cards and launching new online products which was not more than two years ago.

The operations were altered accordingly after the limitations were removed.

At the same time, the bank unveiled a digital credit card that allows youngster of this age to apply for the card online and receive one in two minutes.

When asked if he saw any business effects from the Reserve Bank's recent decision to let users select their preferred card network, Rao responded in the negative.

The bank is also known for rolling out a slew of incentives including up to five percent purchases at a cost of Rs.250 for the base card variant at specific brands.

Rao said that the collaboration with Visa will allow the card to be offered and that bank would release a similar product with other networks in the coming months.

This digital card is called ‘Pixel’, which Rao says that it will have a 50 percent lesser cost of acquisition per customer than a physical card.

According to him, lenders are currently talking with the regulator about a number of other issues at the industry level since they believe that some clarification can be given on a couple of them.

The bank's Payzapp, which already has 10 million registered users, would initially be the preferred app for the digital card, but attempts are being made to launch it on additional platforms as well, he stated.