Finance Ministry To Banks: After the technical problem last week in the country’s largest government bank UCO Bank, once again a debate has erupted on the rapidly increasing use of digital for financial purposes. Last week, Rs 820 crore was wrongly transferred to the accounts of some people through Immediate Payment Service (IMPS) in the 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.
Finance Ministry gave instructions to banks
Keeping in mind the recent incident in UCO Bank, the Finance Ministry has asked public sector banks to review the systems and processes related to their digital operations. According to sources, the Finance Ministry has advised banks to check the strength of their cyber security and take measures to strengthen it. Sources said that the Finance Ministry has advised banks to keep a strict vigil and be prepared for future cyber threats.
Finance Ministry and RBI keep alerting
Amidst the increasing digitalization in the financial sector, the Finance Ministry and the Reserve Bank of India (RBI) have been making banks aware about this at regular intervals. The IMPS platform is operated by the National Payments Corporation of India (NPCI). IMPS is a system of immediate money transfer between two banks which is being used extensively these days.
There was a stir due to the irregularities in UCO Bank.
UCO Bank has told the stock market that it took proactive steps and froze the accounts of the payees and managed to recover Rs 649 crore out of Rs 820 crore. This is about 79 percent of the total amount sent incorrectly. However, UCO Bank has not yet clarified whether this technical fault happened due to human error or due to ‘hacking’ attempts.
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