According to a report in Mint, the bank is trying to recover funds worth Rs 100 crore from close to 4,468 customer accounts,
A report by BQ Prime states that Rs 35-40 crore has not been recovered.
According to BQ Prime, some customers who did not cooperate with the recovery process have complained of harassment by the bank. Quoting a source, the report said that the bank May Legal remedies have to be taken to recover the money.
“The said money transfer issue is almost completely resolved. To put matters in context, a performance error was noticed in the balances of some customer accounts after the system patch upgrade on the night of 28 May / morning of 29 May, 2022,”
said in a statement to BQ Prime.
The bank had temporarily closed around 100 bank accounts in May after some customers allegedly received around Rs 13 crore due to a technical snag. The incident took place during a system upgrade at a branch on Osman Road in Thyagaraya Nagar, Chennai.
It had earlier decided to overhaul the entire system following the central bank’s restrictions on some digital offerings.
HDFC Bank was under the scanner of RBI for repeated technical glitches on its digital platform. RBI lifted the ban in March this year.
About two and a half years ago, the central bank ordered the bank to temporarily halt all digital launches and new sourcing of credit card customers.