The Finance Ministry has issued a new order regarding banks. These instructions have been issued to protect against cyber crimes (cyber security).
Keeping in mind the recent incident in UCO Bank, public sector banks have been asked to review the systems and processes related to their digital operations. According to sources, the Ministry has advised banks to check the strength of their cyber security and take measures to strengthen it.
Sources said banks should keep a close watch and be prepared for future cyber threats. Amidst the increasing digitalization in the financial sector, the Finance Ministry and the Reserve Bank of India (RBI) have been making banks aware about this at regular intervals. Last week, Rs 820 crore was wrongly transferred to the accounts of some people through Immediate Payment Service (IMPS) in public sector UCO Bank.
Operation is done by NPCI
The IMPS platform is operated by National Payments Corporation of India (NPCI). Money can be transferred instantly between two banks through IMPS. You do not have to wait after transferring money through IMPS.
UCO Bank is making recovery
UCO Bank has told the stock market that it took proactive steps and froze the accounts of the payees and out of Rs 820 crore, Rs 649 crore has been recovered. This is about 79 percent of the total amount sent incorrectly. However, UCO Bank has not yet clarified whether this technical glitch was due to human error or a ‘hacking’ attempt.