In an unexpected turn of events, UCO Bank disclosed that approximately Rs 820 crore was mistakenly credited to certain account holders due to a technical glitch. The bank has diligently undertaken measures to rectify the error, successfully recovering Rs 649 crore, which accounts for 79% of the erroneously credited amount. The recovery process involved blocking the recipients’ accounts and implementing proactive steps to address the situation. However, the bank has not clarified whether the glitch was a result of human error or a potential hacking attempt.
The technical issue occurred on the Immediate Payment Service (IMPS) platform, operated by the National Payments Corporation of India (NPCI). IMPS facilitates real-time interbank electronic funds transfers without intervention. UCO Bank has reported the matter to law enforcement agencies for further investigation and necessary action. Despite the bank’s efforts to recover the remaining Rs 171 crore, the incident raises concerns about the security and robustness of digital financial systems.
In the financial realm, UCO Bank’s net profit for the quarter ending September 2023 witnessed a 20% decline, dropping from Rs 505 crore to Rs 402 crore compared to the corresponding quarter in the previous year. However, the bank’s total income during the July-September period increased from Rs 4,965 crore to Rs 5,866 crore year-over-year. The interest income for Q2 FY24 also saw a notable rise, reaching Rs 5,219 crore as opposed to Rs 4,185 crore in the same period last year. Despite the technical setback, the bank remains committed to addressing the financial implications and securing its digital infrastructure.
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