A few days ago it was reported that a wrong payment of Citibank has proved to be blunder for him. It is now learned that two employees of Wipro also have a role in the biggest mistake in Citibank history. The whole matter was that the cosmetic company Revlon had taken a term loan in which Citibank was an administrative agent.
Citibank was to transfer $ 78 million (Rs 57,09,21,000) to Revlon, which was paid by the cosmetic company as interest to its lenders. But by mistake, Citibank transferred $ 90 million or 6565 crore rupees to Revlon. Citibank’s mistake was that it also transferred the principal amount along with the interest.
This kind of mistake can be overwhelming for any bank. Citibank has the entire process of “Six eye” approval for transactions. That is, it is examined and reviewed before any money transfer.
In this case, the first two people who investigated this transaction were two employees of Wipro. This was part of his work as this responsibility was outsourced to Wipro.
The first is called Employee Maker who has to manually enter payment information in the bank’s Flexcube loan processing program. The second employee is called the checker which checks whether the information given by the first employee is correct or not. After this the final approval is done by someone from Citibank’s team and the same team is being held responsible for the mess.
Citibank did this transaction in 2016. Revlon then took a $ 1.8 billion syndicate loan for seven years. Citibank was the administrative agent for the loan. However, when Citibank asked for funds from Revlon, the company refused to give it. After this, the whole matter reached the court. Where the court has ruled that the mistake has been made by the bank and the company cannot be forced to return the money. The company can keep this money. However, Citibank is set to challenge the decision.