Citibank mistakenly sends ₹7,000 lakh crore as a substitute of ₹24,000 to consumer: Report
Citibank mistakenly transferred $81 trillion (over ₹7,000 lakh crore) to a consumer as a substitute of $280 (practically ₹24,500) in April final yr, Monetary Occasions reported. The transaction was reversed with out hours.
A complete of two workers missed the transaction, pointing to a obvious lapse. The wrong transaction was detected by a 3rd worker about 90 minutes after it was posted.
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Citibank reported the incident as a “close to miss” to the US Federal Reserve and the Workplace of the Comptroller of the Forex, in keeping with the report. The report added that no funds left the financial institution.
A Citigroup spokesperson informed Bloomberg {that a} transaction of this quantity “couldn’t even have been executed”. “Our detective controls promptly recognized the inputting error between two Citi ledger accounts and we reversed the entry,” the spokesperson added.
“Our preventative controls would have additionally stopped any funds leaving the financial institution,” they mentioned, including that the transaction had no impression on the financial institution or its consumer.
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A complete of 10 close to misses of $1 billion or extra occurred at Citi final yr, in keeping with the FT, citing an inside report. Whereas it’s down from 13 circumstances in earlier yr, the report mentioned close to misses of higher than $1 billion have been uncommon throughout the US financial institution trade.
Earlier close to miss
In 2020, the financial institution had mistakenly despatched $900 million to a bunch of lenders who have been fastened in a battle with the sweetness firm Revlon. In the identical yr, Citibank was fined $400 million because it failed to deal with points in its threat administration procedures and inside controls.
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In line with New York Occasions, Citibank’s former CEO Michael Corbat had exited from the agency resulting from issues with its expertise and inside programs. Moreover, Citi was fined $136 million final yr too for not making sufficient progress in fixing its data-management points.
