2024-01-11 03:34:27
Finance Ministry Issues New Order to Protect Banks Against Cyber Crimes
The Finance Ministry has issued a new order to public sector banks, directing them to review their digital operations in light of recent cyber security threats. The order comes after a significant incident at UCO Bank, where 820 crore rupees was wrongly transferred through the Instant Payment Service (IMPS) to the accounts of some individuals.
Following the incident, the Reserve Bank of India (RBI) and the Ministry of Finance have been working to create awareness among banks about the increasing digitization in the financial sector. The IMPS platform, operated by the National Payments Corporation of India (NPCI), allows instant transfer of money between two banks.
UCO Bank reported suspicious transactions through the IMPS service, with 41,000 UCO bank accounts and 14,000 accounts in seven private banks being affected. Additionally, 8.53 lakh transactions were mistakenly recorded in the register of UCO Bank account holders, resulting in 820 crore rupees being wrongly collected and withdrawn from bank accounts.
In response to the incident, UCO Bank has taken action to freeze the accounts of the payers and has managed to recover 79 percent of the total amount sent incorrectly. However, it remains unclear whether the technical glitch was due to human error or a hacking attempt.
The Finance Ministry has scheduled a high-level meeting to address cybersecurity concerns in the financial services sector, emphasizing the importance of banks closely monitoring and preparing for future cyber threats.
In the wake of these developments, it is crucial for banks to strengthen their cyber security measures and ensure the protection of their digital operations. The Ministry of Finance and RBI are actively working to address these challenges and protect the financial sector from cyber crimes.
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