By The Financial District
Oct 19, 20231 min
A disruption in Japan's payments clearing network last week was attributed to a failure in backup procedures, as disclosed by the network's operator.
Transfers via automated teller machines, online banking, and bank counters were all subject to delays during the two-day system disruption through October 11. I Photo: Katamakura Wikimedia Commons
This issue has "shaken trust" in the entire clearing system, according to Mainichi Japan.
Customers affected by the system failure will receive compensation for any charges incurred due to the service disruption from their financial institutions, as confirmed by the Japanese Banks' Payment Clearing Network.
Transfers via automated teller machines, online banking, and bank counters were all subject to delays during the two-day system disruption through October 11.
This marked the first disruption to impact bank customers since the network's launch in 1973. The operator revealed that a simultaneous system update at bases in Tokyo and Osaka rendered the backup system nonfunctional at that time.
An official stated that the operator is currently reviewing operational procedures to determine if there were any issues, emphasizing that "there is a possibility that if the updates had been performed one by one, this situation could have been avoided."