Why UCO Bank customers are unable to make IMPS transactions
What's the story
Between November 10 and 13, 2023, government-owned UCO Bank experienced a technical issue affecting some Immediate Payment Service (IMPS) transactions, an exchange filing has revealed.
This glitch resulted in transactions initiated by customers of other banks being credited to UCO Bank account holders without the actual transfer of funds.
To address the situation, the bank has temporarily disabled the IMPS channel and is collaborating with relevant parties to fix the problem and resume services as quickly as possible.
Insights
What is IMPS?
IMPS or Immediate Payment Service as the name suggests is a payment system in India for instant and 24x7 transfer of funds within the country.
It is a real-time interbank electronic fund transfer system managed by the National Payments Corporation of India (NPCI).
It is accessible through various channels like internet banking, mobile banking apps, bank branches, ATMs, SMS, and IVRS.
Details
Law enforcement agencies informed, financial impact yet to be ascertained
UCO Bank has notified law enforcement authorities about the technical glitch for necessary action.
The financial repercussions of this glitch are still undetermined, and the bank is working to assess the impact.
Despite this setback, UCO Bank maintains that all other essential systems are functioning and accessible, ensuring secure and reliable services for its customers.
What Next?
UCO Bank's Q2 net profit declines
Separately, for the quarter ending September, the bank reported a 20% decrease in net profit, totaling Rs. 402 crore compared to Rs. 505 crore during the same period the previous year.
At the time of writing, UCO Bank's stock price saw a slight increase of 0.38%, at Rs. 39.75 per share on NSE.