UCO Bank has lodged a complaint with the Central Bureau of Investigation (CBI) following a technical glitch in its Immediate Payment Service (IMPS) system. The glitch, which occurred between November 10 and November 13, caused erroneous credits to be transferred to certain account holders. The bank has taken the IMPS channel offline as a precautionary measure and is working to rectify the issue.
Ashwani Kumar, managing director and CEO of UCO Bank, stated that the bank is still investigating the exact nature of the glitch. He added that the bank has recovered around 79% of the erroneously credited amount, totaling Rs 649 crore, and is taking steps to recover the remaining Rs 171 crore.
The Reserve Bank of India (RBI) is also monitoring the situation and assessing the nature of the glitch. UCO Bank has assured its customers that all other critical systems are operational and secure.
The bank’s net profit for the quarter ended September (Q2FY24) declined 20.4% year-on-year (y-o-y) to Rs 402 crore due to a decrease in non-interest income and an increase in operating expenses. Sequentially, the bank’s profit increased 79.7% from Rs 223 crore in the quarter ended June (Q1 FY24).