The Royal Bank of Scotland has been fined £42m by The Financial Conduct Authority for and IT outage that left customers unable to access their bank accounts.
The Royal Bank of Scotland was also fined £14m by the Prudential Regulation Authority, bringing the banks total forfeit to £56m.
Back in the summer of 2012, customers of RBS, NatWest and Ulster bank were locked out of their accounts as a result of a glitch in the CA-7 batch process scheduler. The FCA did not fine RBS however, as they felt the bank had taken significant steps to address their failings in IT since 2012, after spending £1bn annually to maintain its IT infrastructure.
The FCA said: "The incident was not the result of the banks' failure to make a sufficient investment in its IT infrastructure."
A senior IT source at the FCA believes the size of the fine might just be pocket money and the fact that the loss is directly related to IT problems might not set a precedent.
He said: "For a fine directly related to IT, it is quite significant."
Tracy McDermott, director of enforcement and financial crime at the FCA thinks modern banking depends on effective, reliable, and resilient IT systems.
She said: "The banks' failures meant millions of customers were unable to carry out the banking transactions which keep businesses and people's everyday lives moving.
"The problems arose due to failures at many levels in the RBS Group to identify and manage the risks which can flow from disruptive IT incidents, and the result was that RBS customers were left exposed to these risks. We expect all firms to focus on how they ensure that they can meet the requirements of their customers when looking at their IT strategies and policies."
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