Citibank Lost $900mn In The "Accidental Fund Transfer Case"

"Jaldi Karenege Jaldbaazi Nahi," the new tag line of Google Pay is worth following, or else you could make a mistake like American Bank did last year. Citibank's $900mn blunder is considered the biggest blunder in banking history causing the bank to face a tremendous amount of loss.

Citing it as human error, the bank demanded the money back. Did it succeed in recovering the loan amount of $900mn i.e. ₹6,500 crores approx. ?

Read further to know.

Biggest Mistake In Banking History

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Citing as a human error, Citibank asked the creditors to refund the money. Unfortunately, lenders denied the bank's request following which the bank had moved to court.

Luckily, few creditors had returned some portion of the accidental transfer but the amount of $500mn i.e. ₹3,629 crores is left unrecovered for which the bank is battling hard with lenders.

Lenders are aware of the accidental transfer of money so they are not liable to keep the money, said Citibank.

The Court's Judgement In The Case

The rigorous process involves all the details of the recipient, sender, verification, approval, and acknowledgment. So, the error can be easily spotted during the entire process.

There have been cases of accidental payment from the customer's end and the bank is not liable to return the money. But, in the case of Citibank, the scenario is complete upside down raising the question, whether creditors should return the money or not?

According to the legal rule of New York, if creditors are unaware of the mistaken payment they can keep the amount. So, ultimately the decision goes in favor of creditors of Revlon but the bank is not happy with the court's judgment and said, " will appeal the court ruling."

Let's see what lies ahead in the Citibank $900mn blunder.