Banking News

UCO Bank IMPS: CBI conducts search ops in West Bengal and Karnataka following Rs 820-cr IMPS glitch at UCO Bank


The Central Bureau of Investigations (CBI) has conducted search operations in around 13 locations in West Bengal and Karnataka in its investigation related to the IMPS transactions worth Rs 820 cr in UCO Bank accounts.

Kolkata-based UCO Bank had registered a complaint against two Support Engineers who worked with the bank alleging suspicious transactions through Immediate Payment Service (IMPS) amounting to around Rs 820 crore.

Despite reporting the matter to law enforcement agencies, the state-owned bank did not clarify whether this technical glitch was due to human error or a hacking attempt.

Apart from the accused, the CBI’s search also included the premises of private persons and bank officials. During searches, electronic evidence including mobile phones, laptops, computer systems, email archives, and debit and credit cards were recovered, the CBI said in a release.

Between November 10 and 13, inward IMPS transactions from 14,000 account holders across seven private banks were directed to 41,000 account holders with UCO Bank.

“It was further alleged that this intricate network involved a staggering 8,53,049 transactions and these transactions were mistakenly posted in the UCO Bank account-holders’ records, despite the originating banks registering failed transactions,” the CBI said.Subsequently, approximately Rs 820 crore allegedly found its way into UCO Bank accounts without proper debits from the originating banks’ account holders, the investigation agency said.The bank in November said that it recovered Rs 649 crore or 79 per cent of the amount erroneously credited to some accounts of the bank.

The IMPS platform is operated by the National Payments Corporation of India (NPCI). IMPS is a real-time interbank electronic funds transfer system that happens straight without intervention.


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