Hyderabad-based Indian IT support team behind UK's Natwest bank meltdown?

   Jun 26, 10:47 am

London, June 26 (ANI): A flawed computer programme of the UK bank Natwest, which was being supervised by an IT support team in India, was behind the chaos for thousands of Royal Bank of Scotland (RBS) customers after it encountered a problem in its transaction processing software.

The banking giant was urgently seeking computer graduates with several years experience of using CA-7, the programme which the bank uses to run its vast network of transactions and accounts.

The RBS had reportedly advertised for a series of key jobs at the bank, paying between 9,000 to 11,000 pounds a year, in the Indian city of Hyderabad , which is way below what an equivalent worker is normally paid in Britain.

The job advertisement read: 'Looking for candidates having 4-7 years of experience in Batch Administration using CA-7 tool. Urgent requirement by RBS.'

According to the Daily Mail, the technology website 'The Register' claimed that the transaction software, CA-7, needed to be updated, and the Indian staff who were employed by the bank, needed to oversee the software, round the clock to solve any faults.

Problems began on Tuesday night when the CA-7 was being updated, when some crucial files were deleted in the process. While the bank authorities spotted the error, but the same technical snag was repeated on Wednesday and again on Thursday.

It was only on Friday morning when the bank staff realised the full scale of the crisis, were urgent calls made to the Indian IT staff and troubleshooters were drafted in.

The problem was that every single transaction that was waiting in the queue had to be reprocessed in strict order of arrival, causing further delays over last weekend.

However, the RBS has consistently denied that the decision to relocate jobs to India has made any difference to its handling of the situation, and denied that its controversial job out-sourcing programme has been responsible for the transaction processing fiasco.

It merely claimed that the 'software error occurred on a UK-based piece of software', but declined to clarify where the staff overseeing the software were based.

Computer Associates, which owns CA-7, declined to comment on what had caused the problem.

The fiasco is believed to be the longest and most widespread problem of its kind since the advent of computer banking. (ANI)

Rise in growth rate reflects Govt.'s efforts, says Sitharaman Dec 1, 12:39 pm
New Delhi, Dec.1 (ANI): Union Minister of State for Commerce and Industry Nirmala Sitharaman on Tuesday attributed the rise in the growth rate to 7.4 percent to the measures taken by the Centre over the last several months.
Full Story
Single-window setup for speedy approvals of economic zones: ASSOCHAM plea to govt. Dec 1, 12:39 pm
New Delhi, Dec 1 (ANI): To arrest the exodus of investors from the SEZ scheme entirely benefitting the SEZs/FTZs/EZs in countries such as China, UAE, Malaysia, Thailand, Vietnam, the industry body ASSOCHAM has advocated for single window clearance mechanism, ease of doing business and fiscal incentives both direct and indirect.
Full Story
Second quarter GDP numbers show path of recovery: FICCI Dec 1, 11:58 am
New Delhi, Dec 1 (ANI): Commenting on the second quarter GDP numbers, Dr. A Didar Singh, Secretary General, FICCI said that the there has been an uptick in the GDP numbers and the economy is steadily moving on the recovery path, which is an encouraging sign.
Full Story
RBI leaves repo, CRR, FY16 growth projection unchanged Dec 1, 11:58 am
New Delhi, Dec 1 (ANI): The Reserve Bank of India (RBI) kept the benchmark repo rate unchanged at 6.75 percent after lowering it by 50 basis points for front-loading policy action in September.
Full Story