The incident in 2018-19 where R94 crore was siphoned off was due to a cyber attack and bank has adopted adequate security measures since
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A report on February 20 had stated that The Cosmos Co-op Bank Ltd was involved in massive financial irregularities, mismanagement and that fraudulent loans were issued to shell companies connected to the bank’s top promoters.
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The bank has clarified that such a scam did not take place. The incident was owing to a cyber attack, after which the bank adopted robust cyber security controls as per regulatory norms, officials said.
The bank has also clarified that the RBI has not imposed any restrictions on its operations or on any officials or its directors. None of its officials or directors were arrested in connection with fraud or for violations of law under the Prevention of Money Laundering Act (PMLA).
The error is regretted. - mid-day
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