Between the 10th and 13th of November, UCO Bank encountered a significant technical hiccup within its Immediate Payment Service (IMPS), resulting in the erroneous crediting of Rs 820 crores to multiple recipients. Swift action was taken as the bank promptly deactivated the IMPS channel and subsequently blocked the accounts of the unintended beneficiaries.
IMPS enables individuals to instantly send and receive money through their mobile phones or internet banking. This service facilitates real-time transactions, providing users with a convenient and secure means of transferring funds.
There are speculations that the glitch might have been because of a human error or a cyber incident, however the same hasn’t been confirmed yet.
UCO Bank has managed to recover a substantial portion of the mistakenly transferred funds, amounting to Rs 649 crore, which constitutes 79% of the total amount.
Understanding the gravity of the situation, the state-owned lender has proactively sought the intervention of the Central Bureau of Investigation (CBI) to conduct a thorough investigation into the technical glitch.
In a bid to restore normalcy, the state-owned lender based in Kolkata is actively working towards bringing the IMPS channel back online at the earliest. The bank reassures that the other services are still available and functioning under normal circumstances.
UCO Bank is currently trading at Rs 39.38, reflecting a decrease of -1.13% compared to its previous closing price. The stock has been fluctuating within the range of 39.16 and 39.83. In the present year, UCO Bank has shown a growth of 26.35%, and over the last 5 days, it has gained 6.28%.
The government-owned entity witnessed a 20% decrease in its net profit, amounting to ₹402 crore, for the quarter concluding in September 2023.
UCO Bank is taking proactive steps to resolve the matter as soon as possible. This and several such incidents from the past underscore the importance of efficient infrastructure and continuous monitoring to ensure the security of financial transactions.