UCO Bank yet to recover over Rs 100 crore in the IMPS case, says government

On November 15, UCO Bank took the IMPS money transfer option offline after a technical glitch caused valid transfers initiated by customers of other banks to be rejected

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Public sector lender UCO Bank is yet to recover Rs 114.69 crore out of Rs 850 crore as of December 7 in the  Immediate Payment Service (IMPS) money transfer case, said Bhagwat Karad, Minister of State (MoS) for Finance, in a written reply in the Lok Sabha on December 18.

"As per inputs received from Reserve Bank of India (RBI), as of December 7, 2023, UCO Bank has recovered Rs 705.31 crore out of Rs 820 crore, "said Karad.

The minister added that UCO Bank lodged an FIR with CBI on November 15, 2023, regarding a transfer/deposit of Rs 820 crore to a different account from UCO Bank.

Notably, on November 16 Moneycontrol reported that the state-run UCO Bank has sought the intervention of the apex probe agency, the Central Bureau of Investigation (CBI).

Karad further added that a meeting was convened by the Department of Financial Services on November 28 to discuss issues related to cyber security in the financial services sector and increasing incidents of recent online financial frauds.

Representatives from various ministries/departments, Reserve Bank of India (RBI), Telecom Regulatory Authority of India (TRAI), Unique Identification Authority of India (UIDAI), Indian Cyber Crime Coordination Centre, the National Payments Corporation of India (NPCI) and banks attended the meeting.

"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.

On November 15, UCO Bank took the IMPS money transfer option offline after a technical glitch caused valid transfers initiated by customers of other banks to be rejected. A senior official told Moneycontrol that errors occurred when customers of 6-7 banks initiated transfers to UCO Bank customers, due to which UCO Bank’s system sent a “transaction failed” message to the remitter banks and credited the money back to them, while also crediting the money to the intended recipient.