Ministry of Finance to Banks: After last week’s technical glitch at UCO Bank, the country’s largest state-owned bank, the rapidly growing use of digital for financial purposes has once again sparked debate. Last week, Rs 820 crore was wrongly transferred to the accounts of some people through the Immediate Payment Service (IMPS) at leading public sector bank UCO Bank. Now the finance ministry has also taken action on this and has given important instructions to the public sector banks.
The Ministry of Finance issued instructions to the banks.
Keeping in mind the recent incident at UCO Bank, the Finance Ministry has asked public sector banks to review their systems and processes related to digital operations. According to sources, the finance ministry has advised banks to check their cyber security strength and take steps to strengthen it. Sources said that the Ministry of Finance has advised the banks to maintain strict vigilance and be prepared for future cyber threats.
The Ministry of Finance and RBI are on alert.
Amid the growing digitization in the financial sector, the Ministry of Finance and the Reserve Bank of India (RBI) are informing banks about this at regular intervals. The IMPS platform is operated by the National Payments Corporation of India (NPCI). IMPS is a system of instant money transfer between two banks which is widely used these days.
Irregularities at UCO Bank caused a stir.
UCO Bank has told the stock market that it took proactive steps and froze the accounts of the payers and managed to recover Rs 649 crore out of Rs 820 crore. This is about 79% of the total amount misdirected. However, UCO Bank is yet to clarify whether the technical glitch was due to human error or ‘hacking’ attempts.
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(Translation of Tags) Ministry of Finance