'No issue with IMPS platform': UCO Bank issues clarification after reporting technical glitch

The public sector lender UCO Bank on November 15 reported a technical glitch in some Immediate Payment Service (IMPS) transactions. Due to the glitch, transactions initiated by account holders of other banks resulted in credit to the account holders of the bank.

The bank has clarified that there was no issue with the lender's IMPS platform.

A person familiar with the matter told CNBC-TV18 that the erroneous transactions occurred when customers from other banks initiated transfers to UCO Bank customers, and UCO Bank’s system sent a “transaction failed” message to the remitter banks due to a technical glitch. This, it is understood, resulted in the amount being credited back to the remitter bank, even though the money had been correctly credited to the intended receiver. As a result, while the amount was credited to the intended receivers, it was also mistakenly credited to the sender as well. This person added that such transactions were initiated by customers of about 6-7 other banks to UCO Bank.