In the last few years, there have been many such reports from the banking sector in India, which have raised concerns among the general public. Now one such news is coming from Citibank.
In the last few years, there have been many such reports from the banking sector in India, which have raised concerns among the general public. Now one such news is coming from Citibank. This case is considered to be the biggest explosion in the history of banking sector. In fact, the case relates to cosmetic company Revlon. The company has caused a loss of ₹ 500 million (about Rs. 3,650 crore) to the bank. Let’s know how this whole case happened
As reported by Moneycontrol, Citibank mistakenly transferred ₹ 500 million to cosmetics company Revlon. The bank cannot withdraw the amount transferred due to an official error. This is because the company is not returning the amount accidentally transferred due to bank error. Because of which the case went to the US court. The court termed the bank’s mistake as the biggest flaw in the history of the banking sector.
The biggest mistake happened like this
The case dates back to August 2016, when Citibank gave a 1.8 million loan to cosmetics company Revlon. The company took this loan to acquire a larger brand. But Banc 500 million was accidentally transferred due to a bank software error. According to the bank, the error was due to their software being outdated, causing an error in transferring money to the company. But the company refused to return the amount. The case then went to the US court. The court also held that this was the biggest mistake of the bank.
What did the court say?
This case, which has been going on in the court for almost four years, has made it clear that this is the biggest mistake in banking history. This means that Citibank will now have to pay heavy fines for this mistake and will incur a loss of around Rs 3,500 million to about Rs 3,650 crore. There have been some incidents like this in the banking sector before, but this is the biggest ever in terms of money.
The bank does not agree with the court’s decision
According to AFP, a spokesperson for Citibank said, “We completely disagree with the court’s decision.” This amount has been transferred by mistake and we will keep trying to recover it.
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