According to an exclusive report by Moneycontrol’s Dinesh Unnikrishnan and Chandra R Srikanth, Indian IT firm Wipro is in the spotlight in what is called to be the global banking major Citibank’s “biggest ever banking blunder”.
The Six Eyes Protocol
According to the report, when it comes to high-value transactions, Citibank relies majorly on a so-called “six eyes” protocol. For large amounts to be transferred at least 3 people, in order to ensure extra precaution, must sign off large sums of money. Two, in this particular case, happened to be working in India with Wipro Technologies.
Revlon’s lenders were mistakenly wired around USD 900 million by Citibank, as per the reports. On top of it, the global banking major also lost a US-based legal battle to recover the money.
Moneycontrol’s email queries to Wipro regarding the same have failed to get a response from the IT major.
Citibank said that they are in the process to upgrade their loan operations platform as a result of a review undertaken last year (2019). The global leader in financial services said that such an operational error is unacceptable for their stature. In the emailed response to Moneycontrol they added that until the new system is operational significant, additional controls have been placed.
Law On Our Side : Citibank
Citibank also said that the it was recognized by many lenders that the payment was made by an error, and hence returned several hundred million dollars so far. On the contrary, some lenders have either refused to return or have not committed to return the funds. Those funds have been frozen by court order. Citibank believes the law to be on their side and believes that they shall be able to recover the outstanding funds.
The India-based captive provider of IT services and solutions, Citi Technology Services, was bought in 2008 by Wipro to Citigroup entities worldwide. Also, Citibank operation and management of Citi’s data centre at Meerbusch in Germany was taken over by Wipro in 2010.
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