Central Bank of India has resumed its RTGS services after a temporary suspension caused by a security breach. The bank confirmed that unauthorized transfers totaling approximately ₹13.9 crore occurred in its RBI settlement account between October 15 and 17. The lender emphasized that core customer deposits remain safe, but the incident has drawn attention to operational and cyber security protocols.
Central Bank of India has fully restored its Real Time Gross Settlement (RTGS) services across all banking channels following a temporary shutdown. The suspension was initially triggered by a technical malfunction identified within the interface of the bank's localized server, which was later linked to a security breach involving the institution’s settlement account held with the Reserve Bank of India.
The bank reported that unauthorized transfers resulted in the loss of approximately ₹13.9 crore between October 15 and October 17. In an effort to reassure depositors, the lender clarified that the breach was contained within the specific settlement interface. The core banking system, which manages individual customer accounts and savings, remained isolated from the compromise. Consequently, customer funds and sensitive personal data were not affected by this incident.
From an investor perspective, the event highlights the operational risks associated with digital banking infrastructure. While the financial impact of ₹13.9 crore is relatively small in the context of the bank's total operations, security breaches in settlement accounts can lead to increased regulatory scrutiny and may require the bank to accelerate spending on IT security and systems upgrading. The Mumbai Police are currently investigating the unauthorized transactions to track the movement of the funds.
The key monitorable for investors will be any follow-up commentary from the management regarding the recovery of the siphoned funds and the findings of their internal investigation. Market participants may also track potential regulatory developments or audits related to the bank's digital security framework. Future quarterly reports or regulatory disclosures may provide more clarity on whether this incident leads to any material changes in the bank's capital allocation toward technology and security infrastructure.