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Junior technician in India accused for RBS computer meltdown

Anuradha Shukla | June 27, 2012
Said to have erased a mass of data during a routine software upgrade for the Royal Bank of Scotland.

Reports on technology website The Register claims that a junior technician in India caused the Royal Bank of Scotland (RBS) computer meltdown which froze millions of British bank accounts.

A new IT worker based in Hyderabad has been accused of erasing a mass of information during a routine software upgrade for the RBS and its subsidiaries NatWest and Ulster Bank.

Outsourcing IT jobs to India by banks is thus again in focus as it leads to job losses in Britain.

This 'mistake' by the junior technician is said to have stalled about 100 million transactions and the bank had to spend hours re-entering deleted information into its computer system.

Millions of payment entries have been deleted from accounts and so customers cannot withdraw cash, check their balance or pay bills.

"We will expect RBS-NatWest to provide us with a complete account of the issues once this is fully resolved and to take any necessary steps to ensure that the risks of these problems occurring again are addressed," said the Financial Services Authority.

Catastrophic failure

Finance analysts have pointed out that this catastrophic failure may take several days to sort out.

Report from says that while RBS and NatWest are not sure how many of their 15 million customers were affected; Ulster Bank has reported 100,000 of its 1.9 million account holders to be hit by this crisis.

The bank group has been receiving 500 calls a day from customers and according to a spokesman, it could be weeks until the bank manages to sort out every complaint.

It is said that this junior computer operator from India accidentally erased a mass of data while carrying out an upgrade to the CA-7 software banks used to run the bank group's vast network of transactions.

However, a report from Times of India says RBS has announced this crisis has no link to its outsourcing programme in India.


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