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`Snags in RBI's system delayed UTI-I refunds'

Veena Venugopal

Mumbai , April 8

IN continuation of beleaguered UTI-I's problems with the assured returns schemes, the refunds from the foreclosure of UTI's MIP 99 have been delayed because of glitches while uploading to the Reserve Bank of India's electronic fund transfer system.

Investor accounts were due to be credited on April 2. According to UTI officials, all investors in Mumbai would get their money back today, but those in other cities would have to wait till April 10.

UTI officials clarified that the delay was entirely due to the RBI's failure. Three lakh investors had opted for the electronic fund transfer. The RBI had assured UTI that its systems were capable of handling this volume, but failed to deliver on this assurance, say UTI officials. "While uploading the data to the RBI's systems, transactions were getting aborted for greater than 9000 accounts," said a UTI official

"After the shaky start on April 1, we continued to try and upload the data, even on April 5 and 6, but were not successful. Finally, the RBI asked us to remit the money through electronic clearing system (ECS) instead, as the EFT was a definite failure with these volumes. We have subsequently converted 2.5 lakh accounts to the ECS and the RBI technical support managed to upload 47,000 accounts to the EFT system," said the official.

Payment has been finally effected on April 6, partly through EFT and partly through ECS. The RBI has assured UTI that settlements would happen for all Mumbai-based accounts on April 8 and the rest of the country by April 10.

Further, there would also not be any compensation paid to investors on account of loss of interest revenue, stated UTI. The Securities and Exchange Board of India guidelines allow a 10-day period to clear the dues. Besides, the scheme is part of UTI-I and, hence, is under the control of the Union Government.

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