Introduction:

After the historic “Quit India” campaign in 1942, Mr. G.D Birla, the doyen of Indian industrial rebirth, dreamt up the idea of an Indian bank. This growing idea soon became a reality, and on January 6, 1943, The United Commercial Bank Ltd. was formed, with its Registered and Head Office in Kolkata. The first Board of Directors was comprised of highly esteemed individuals from all walks of life, The Bank’s all-India character has been consistently maintained to this day, not only in the composition of its Board but also in the geographical spread of its more than 3000 employees throughout the country as well as in its overseas centers in Singapore and Hong Kong.

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Brief description of the incident:

After a technical problem caused valid transactions initiated by customers of other banks to be refused, UCO Bank pulled the IMPS money transfer service unavailable on November 15. According to a senior official, errors occurred when customers of 6-7 banks initiated transfers to UCO Bank customers, causing UCO Bank’s system to send a “transaction failed” message to the remitter banks and credit the money back to them while also crediting the money to the intended recipient.

What steps were taken by the UCO bank:

The bank lodged an FIR with CBI on November 15, 2023, regarding a transfer/deposit of Rs 820 crore to some different accounts from UCO Bank.

Official statement and other details:

Statement 1:

“We are getting money back now from different accounts to which they have been transferred. The bank, on average, is getting Rs 1 crore daily, “said a top bank official who did not wish to be named.

Statement 2:

“The meeting took stock of the preparedness of the banks and other financial institutions in tackling the challenges arising from cyber security in the financial services sector, increasing trend of digital payment frauds, and deliberated on a focused approach to mitigate such cyber-attacks and frauds,” Karad.

Statement 3:

A top bank official further added that many of the people who received the money had used their money immediately so it is taking time to get it back. “But the bank is hopeful to get full recovery soon. And we try to make our system stronger, “a top official added.

Conclusion:

Well according to the official, the Bank has recovered 705 Cr. of 820 Cr. which has been deposited in 41000 bank accounts from 14000 deposit holders of different banks in three consecutive days from November 10 to 13. After this, the Bank approached the CBI for investigation.

During the operation, the Central Probe agency tracked 13 different locations in various cities including “The City of Joy”- Kolkata about the case.

The transactions that took place through IMPS (Immediate Payment System) transactions further alleged that these transactions were mistakenly posted in the Bank accounts even though there was a failure in transactions from the source banks. As per the officials of CBI.

It has also been seen that amounts were being withdrawn by the account holders through various banking platforms when they found money credited to their accounts, exploiting the scenario.

Yet Banking Officials are certain to recover the overall amount.

Source credit: UCO bank official website and Money control.

Note: All the videos and the official links are used for fair use purposes only.

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