HDFC Bank recovers some glitch transferred funds

By on June 30, 2022 0

NEW DELHI : HDFC Bank Ltd, India’s largest private lender, is trying to raise about 100 crore from 4,468 customer accounts that saw cash withdrawals after a technical issue in May transferred around 1,000 crore in those accounts, said two people familiar with the development.

After the erroneous transfer that briefly made several customers millionaires, the bank took action by canceling the credit. However, by that time, 4,515 customer accounts had retired approximately 126 crores.

The issue is gaining prominence as HDFC Bank‘s IT infrastructure has recently come under the scanner of the Reserve Bank of India (RBI). In December 2020, the banking regulator banned HDFC Bank from launching new digital products and recruiting new credit card customers. Card restrictions were lifted in August last year, while digital restrictions were removed in March.

“We have used this time to develop short, medium and long-term plans to meet the evolving digital needs of our customers, and we will be rolling out these initiatives in the days ahead,” HDFC Bank said in a statement from the 12th of March. .

HDFC Bank managed to recover approximately 26 crore from 47 customer accounts through means such as funds transfer reminder for those who have used electronic means such as National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS) and immediate payment (IMPS) to transfer that money, but still trying to collect around 100 crores with some customers claiming to have already spent that money.

“The issue of said money transfer has been almost completely resolved. To put things into context, a display error was noticed in the balances of a few customer accounts after a system patch upgrade on the night of May 28 / early morning of May 29, 2022. This caused some Bank customers to notice an erroneous balance in their account. After proactive detection by the Bank, the issue has been resolved for all of these accounts. These customers can now manage accounts for which they are intended,” an HDFC Bank spokesperson said in a June 24 statement to Mint.

HDFC Bank is also investigating how to recover money spent through Unified Payment Interface (UPI) transactions at merchant establishments. In addition, in order to recover money from an HDFC bank account, all HDFC accounts of the same client were frozen to recover it. When the money has been transferred to other bank accounts via third-party transfers, HDFC Bank corresponds with these banks to get the amount refunded. In addition, fixed deposits with HDFC Bank in which the transferred amount was parked are being recovered.

“We haven’t heard of such a transfer for a long time. HDFC Bank does everything to recover money from those who have withdrawn money. While the majority of testimonies come from Tamil Nadu, there have also been cases from other parts of the country,” said one of the two people quoted above, on condition of anonymity.

As of March 31, HDFC Bank had deposits of 15.6 trillion. It has 6,342 branches and plans to double the number of branches in three years.

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