![]() ![]() Impact Ĭompletions of new home purchases were delayed, and some people were stranded abroad. A spokesman for the RBS Group said that the problem had occurred in the UK. Unite union leaders criticised Hester's management of the episode, but Hester denied that the outsourcing of IT services to India was a factor in the problem, saying that the bank's IT services were mostly based in Edinburgh. Stephen Hester, CEO of the RBS Group, said that the problem was caused by a software upgrade. Others faced fines for late payment of bills because the system could not process direct debits. Some customers were unable to withdraw cash using ATMs or to see bank account details. Customers' wages, payments and other transactions were disrupted. It later emerged that the update was corrupted by RBS technical staff. A software update was applied on 19 June 2012 to RBS's CA-7 software which controls its payment processing system.
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