A technical glitch affects HDFC Bank's ability to recover money transferred erroneously

4 Jul 2022 , 10:23 AM

Due to a technological glitch, HDFC Bank is having difficulty recovering money that was mistakenly transmitted to some clients.

The bank is reportedly attempting to collect money worth Rs100 crore from over 4,468 client accounts, according to a Mint report. According to a BQ Prime investigation, the unrecovered funds are between Rs35 and Rs40 crore.

Some of the clients who haven’t been helping with the recovery process, according to BQ Prime, have complained of harassment from the bank. According to the story, which cited a source, the bank could need to take legal action to recoup the money.

“The mentioned money transfer issue has nearly all been rectified. To put things in perspective, during the evening of May 28 and early morning of May 29, 2022, a display issue was discovered in the balances of select customer accounts following a system patch upgrade “In a statement to BQ Prime, HDFC Bank NSE -0.42 percent made a statement.

In May, the bank temporarily blocked around 100 bank accounts after learning that a small number of clients had purportedly received close to Rs13 crore apiece as a result of a technological error. During a systems upgrade, the event took place at a branch in Chennai’s Thiyagaraya Nagar neighborhood on Usman Road.

In response to restrictions placed on some digital products by central banks, it had already opted to modernize the entire system.

The RBI had targeted HDFC Bank because of frequent technical issues with its online platforms. The limitations were removed by the RBI in March of this year. The central bank had instructed the bank to temporarily halt all digital launches and new credit card client sourcing around two and a half years prior.