UCO Bank scam: CBI conducts raids across Rajasthan and Maharashtra over alleged IMPS transactions worth Rs 820 crore

The Central Bureau of Investigation (CBI) conducted extensive raids in seven cities across Rajasthan and Maharashtra in connection with a suspected Rs 820 crore payments scam at UCO Bank. The searches, which focused on individuals receiving and withdrawing money instead of returning it to the bank, involved 67 locations.

Last year, between November 10-13, over 8,53,049 Immediate Payment System (IMPS) transactions took place, leading to the wrongful transfer of Rs 820 crore to the accounts of more than 41,000 UCO Bank account holders. The CBI revealed that IMPS inward transactions initiated from approximately 14,600 account holders of seven private banks were incorrectly posted in UCO Bank accounts, resulting in the credited amount without actual debiting from the originating banks.

This marks the second phase of searches in the case. In December 2023, the CBI conducted searches at 13 locations involving private individuals and UCO Bank officials in Kolkata and Mangalore. The operations resulted in the seizure of approximately 130 incriminating documents related to UCO Bank and IDFC, along with 43 digital devices for forensic analysis.

The case originated from a complaint filed by UCO Bank in late November 2023. It alleges that between November 10 and 13, IMPS inward transactions from around 14,600 account holders of seven private banks were wrongfully posted in the accounts of over 41,000 UCO Bank account holders. Consequently, Rs 820 crore was credited to UCO Bank accounts without the money being debited from their source banks.