41,000 customers of UCO Bank receive a total credit of ₹820 crore, leading to the filing of an FIR by the CBI
The funds reached the accounts of UCO Bank customers through 8.53 lakh IMPS transactions initiated by 14,000 account holders of private banks within a span of three days.
The Central Bureau of Investigation (CBI) has filed an FIR in a case where more than 41,000 UCO Bank customers were unexpectedly credited with different amounts totaling ₹820 crore between November 10-13. There were no corresponding debits in the accounts from which the transfers originated, as per officials.
As part of an ongoing operation, the agency conducted searches at 13 locations in various cities, including Kolkata and Mangalore, in connection with the case, according to sources.
Over a span of three days, funds were deposited into the accounts of UCO Bank customers through 8.53 lakh Immediate Payment Service (IMPS) transactions, originating from 14,000 account holders of private banks, officials reported. Interestingly, no corresponding debits were observed from the originating bank accounts during this period. Numerous account holders withdrew the unexpected credits from their accounts. The nationwide transactions prompted UCO Bank to file a complaint with the Central Bureau of Investigation (CBI) against two support engineers employed by the bank and other unidentified individuals. The complaint alleges “suspicious” IMPS transactions totaling approximately ₹820 crore.
During the search operations, electronic evidence such as mobile phones, laptops, computer systems, email archives, and debit/credit cards were seized, according to the spokesperson of the Central Bureau of Investigation (CBI). Between November 10 and November 13, 14,000 account holders across seven private banks initiated IMPS inward transactions, directing them to 41,000 UCO Bank account holders. The intricate network involved a total of 8,53,049 transactions, which were mistakenly posted in UCO Bank account-holders’ records despite originating banks recording failed transactions, the spokesperson explained. It was further alleged that some account holders took advantage of this situation, unlawfully withdrawing funds from UCO Bank through various banking channels, wrongfully benefiting from the transactions.
On November 16, the bank issued a statement indicating the recovery of Rs 649 crore out of the total Rs 820 crore, which accounts for 79% of the amount. The bank mentioned ongoing efforts to retrieve the remaining balance of Rs 171 crore. Earlier, it attributed the unexpected credits to a ‘technical issue in IMPS,’ where transactions initiated by account holders from other banks led to the crediting of UCO Bank account holders without the actual transfer of funds from those banks. Subsequent to the revelation of this issue, the finance ministry convened a meeting on November 28 to address concerns related to cybersecurity in the financial services sector.
Bank Fraud Alert: Assistant Manager Faces Imminent Lookout Notice for Rs 28 Crore Scam
The police are preparing to issue a lookout circular against an assistant manager of a bank who is alleged to have transferred Rs 28 crore from various accounts of a company to the accounts of his family members and associates over an extended period.
The deputy general manager and regional head of South Indian Bank, filed a complaint in December at Sector 24 police station, expressing concerns that the manager, may have left the country with his family.
“As a result, a lookout circular has been issued against the manager. We are also in the process of tracing the bank accounts utilized by the manager for the transfer and placement of the funds. He is currently evading law enforcement,” a senior police official stated.
A resident of the Noida city, alleged that the manager used his nephew’s account to stash the money. “The manager of the bank lived in our neighborhood. Some months back, he requested my nephew to lend him Rs 20 lakh in cash, assuring that he would transfer the equivalent amount to his account within a few weeks. However, after receiving the money in his account, the bank issued a notice demanding its return,” he explained.
As per deputy general manager’s complaint, the head of internal vigilance at the bank received an email from the manger on December 3, wherein the manager claimed that individuals linked to one of the bank’s clients coerced him into conducting illicit transactions. He further mentioned facing threats when he raised objections.
The manager had requested the bank to file a complaint against Associated Electronics Research Foundation, a holder of an account at the Sector 22 branch. He alleged that the directors of the organization were engaged in hawala transactions.
The company filed a reciprocal complaint, alleging that the manager illicitly and without authorization withdrew Rs. 28 crore from the accounts of the organization.
“There is suspicion that he may have already left the country. Therefore, urgent action, coordinated with passport or emigration authorities, is necessary,” as mentioned in the deputy general manager’s complaint.
