RBS share price: IT affected payments to be rectified by Saturday
Royal Bank of Scotland Group Plc (LON:RBS) said that the underlying issue which caused 600,000 transactions across RBS, NatWest and Ulster Bank to go “missing” had been resolved, but it would take some time to work through the backlog of affected payments.
“The actual technical issue that delayed the payments has now been fixed and now we’re making sure all of those payments are processed through so that by Saturday everyone will be in the right place,” Stuart Hare, managing director of RBS Direct Bank, said as quoted by Sky News.
Hare also said that short-term credit will be made available to those affected.
“We’re really sorry, we know it’s not acceptable,” Hare said. “We know we’ve let our customers down by this issue.”
RBS’ share price had edged 0.37 percent lower to 346.30p as of 13:36 BST today, underperforming the FTSE 100 which had shed some 0.1 percent.
The problem emerged yesterday morning and affected a wide variety of payments, including wages, tax credits and disability living allowance.
Andrew Tyrie, chairman of the Treasury select committee, said that the delay of payment restoration to Saturday was ‘unacceptable,’ and that he would write to RBS’s chief executive Ross McEwan and banking regulators calling on them to make sure that such failures do not occur again.
RBS last year agreed to pay £42 million to the Financial Conduct Authority (FCA) and £14 million to the Prudential Regulation Authority (PRA) for failings in relation to the 2012 IT incident which affected more than 6.5 million customers in the UK and Ireland for several weeks.
The bank has pledged to spend £750 million improving its IT systems, however RBS admitted in its latest annual report that the group’s IT was still vulnerable to glitches and that any recovery from future technical issues would be challenging.
As of 14:51 BST, Thursday, 18 June, Royal Bank of Scotland Group share price is 345.90p.