UCO Bank Recovers 86% Of Funds Erroneously Credited On IMPS

UCO Bank has recovered Rs 705.31 crore as of Dec. 7 of Rs 820 crore, which were erroneously credited into several accounts in November, Union Minister of State for Finance, Bhagwat Karad, said on Monday.

The surprise transfer of the amount to 41,000 UCO Bank accounts was apparently a result of a technical glitch in the bank's IMPS payment channel, according to the bank.

IMPS, or Interbank Mobile or Immediate Payment System, is a round-the-clock instant domestic fund transfer facility accessible via internet banking, mobile banking apps, ATMs, bank branches, and more.

On Nov. 15, UCO Bank lodged an FIR with the Central Bureau of Investigation against two of its support engineers as well as other unidentified individuals. The CBI, thereafter, issued a statement on Dec. 5, stating that searches around 13 locations in West Bengal and Karnataka were conducted in relation to the case. "During the searches, electronic evidence, including mobile phones, laptops, computer systems, email archives and debit/credit cards, were recovered," the statement read.

The Union Ministry of Finance had convened a meeting on Nov. 28 to take "stock of the preparedness of the banks and other financial institutions in tackling the challenges arising from cyber security in the financial services sector," said Karad in a written response to a question in the Lok Sabha.

Karad underlined the need for a focused approach to mitigate cyber-attacks and frauds due to digital payments.

For immediate reporting of financial fraud, the government has set up a Citizen Financial Cyber Fraud Reporting and Management System. "Up to Dec. 4, 2023, an amount aggregating to more than Rs 1,000 crore has been saved in more than 4 lakh incidents," Karad said.