CBI conducts raids in 13 locations- The New Indian Express

By Express News Service

NEW DELHI: The Central Bureau of Investigation (CBI) on Wednesday said it conducted raids at 13 locations in Kolkata and Mangaluru in the case related to wrongful IMPS transactions worth Rs 820 crore in UCO Bank accounts.

The investigation agency on Wednesday informed that raids were conducted at premises of two support engineers working with the bank, bank officials and other private persons. Mobile phones, laptops, computer systems, email archives, and debit/credit cards were recovered during the searches.

CBI has registered a case against two support engineers and other persons on complaint from UCO Bank. The Kolkata-based bank alleged in its complaint between November 10 and November 13, 2023, transactions originating from 14,000 account holders across seven private banks were directed to 41,000 account holders within UCO Bank via Immediate Payment Service (IMPS) channel.

As per the complaint, 8.53 lakh transactions were mistakenly posted in UCO Bank accountholders’ records, despite the originating banks registering failed transactions. A sum of Rs 820 crore found its way into UCO Bank accounts without proper debits from the originating banks’ accountholders. Several account holders of the bank ‘illicitly’ withdrew money from UCO Bank through various banking channels.

The bank in a statement on November 16 had said it recovered Rs 649 crore out of Rs 820 crore or 79% of the amount. The bank had said it was taking actions to recover the balance amount of Rs 171 crore. It had earlier said due to ‘technical issue in IMPS, certain transactions initiated by holders of other banks have resulted in credit to the account holders in the bank without actual receipt of money from these banks.

After the matter came to light, finance ministry called a meeting on November 28 to address concerns regarding cyber security in the financial services sector.

8.53L transactions recorded mistakenly

8.53 lakh transactions were mistakenly posted in UCO Bank account holders’ records, despite originating banks registered failed transactions. Rs 820 crore found its way into UCO Bank accounts without proper debits from the originating banks’ accountholders.

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