State-owned UCO Bank recently faced a technical glitch affecting certain Immediate Payment Service (IMPS) transactions, leading to transfers from account holders of other banks into UCO Bank accounts. The issue, spanning from November 10 to November 13, 2023, prompted the bank to take immediate action.
In a statement released on November 15, UCO Bank disclosed the technical challenges encountered during the mentioned period, emphasizing that specific IMPS transactions initiated by account holders from external banks resulted in the crediting of funds to UCO Bank account holders without the actual receipt of money from the originating banks.
To address this, UCO Bank has proactively taken the IMPS channel offline as a precautionary measure. The bank is actively collaborating with stakeholders to rectify the issue swiftly and restore IMPS services at the earliest. Concurrently, the matter has been reported to law enforcement agencies to ensure necessary actions are taken.
Despite this setback, UCO Bank reassures its customers that all other critical systems remain operational and available, emphasizing its commitment to providing safe and secure banking services. The financial impact, if any, is yet to be ascertained, and the bank is diligently working towards determining the extent of the repercussions.
IMPS, a vital payment system facilitated by the National Payments Corporation of India (NPCI), offers a 24×7 instant domestic funds transfer facility accessible through various channels such as internet banking, mobile banking apps, bank branches, ATMs, SMS, and IVRS.
In the financial market, UCO Bank’s stock price experienced a marginal increase of 0.23% on November 15, 2023, closing at 39.56 per share. Presently, the stock is trading at 39.65 per share, reflecting a minor decline of 0.13% on the NSE.
This incident follows UCO Bank’s earlier report on November 3, where the bank disclosed a 20% decline in net profit to ₹402 crore for the quarter ending September 2023, compared to ₹505 crore reported in the corresponding quarter the previous year. The bank remains focused on addressing challenges promptly, ensuring the integrity of its financial services for its valued customers.