Technical glitch in IOB’s core banking system hits service

A technical snag in Indian Overseas Bank’s core banking system (CBS) on Monday affected services across the country.

According to M. Narendra, Chairman and Managing Director of the bank, following a usual maintenance work, a complex technical malfunction cropped up in the system that restrained banking services to its customers. While the transactions were carried out on the basis of account holders’ Saturday balance in some branches across the country, the bank’s ATM network could not transact any business on Monday.

However, Narendra explained that while customers of other banks could withdraw money from IOB ATMs, IOB customers were able to transact their business on other banks’ ATMs. “Our technical team is working on this, and we hope to get the system back in order by tomorrow,” he said.

The bank has 3,000 branches and a little over 2,000 ATMs.

Meanwhile, the bank has appointed EY (formerly, Ernst & Young) as consultant to shift its core banking system “from an individual platform to Oracle base” in order to align with other banks’ CBS, said Narendra. Since most banks are on the Oracle platform, the rest of the banks were asked to migrate to it. Currently, some banks, including IOB, Canara Bank and Syndicate Bank, are using individual platforms.

ravikumar.r@thehindu.co.in

Source: thehindubusinessline