Bank error costs university Rs1.65 million

Kerala: A clerical error at the State Bank of India (SBI) has cost Kerala University Rs1.65 million after $20,000 was mistakenly transferred to the wife of a Brazil-based journalist instead of the intended Rs20,000, Indian media reported.

The error occurred when the university’s Centre for Latin American Studies attempted to pay ₹20,000 as remuneration to journalist Milan Sime Martinic for delivering four online lectures. A bank clerk reportedly entered the dollar symbol instead of the rupee sign, resulting in the transfer of $20,000.

Officials have described the incident as one of the costliest clerical mistakes in SBI’s recent history.

The excess amount was credited on June 15, 2023, to the bank account of Kathleen Martinic, the lecturer’s wife. The mistake went unnoticed for several months and was formally reported to the university in 2024, prompting efforts to recover the funds.

University authorities contacted Martinic seeking a refund. According to the Centre, he assured officials that the excess amount would be returned, but the money was never credited back to the university’s account.

“Milan Martinic promised to repay the excess amount, but despite his claims, the funds never reached us,” Gireesh Kumar, head of the Centre for Latin American Studies, told Indian media.

A few months after communicating with the university, Martinic passed away, further dimming hopes of recovering the money, officials said.

The funds had originally been drawn from a Rs2 million allocation sanctioned by the state government for a student exchange programme. After the transfer, the excess amount was reportedly moved from Kathleen Martinic’s account to that of a consulting group.

The Centre has since approached the banking ombudsman, but the issue remains unresolved. SBI has acknowledged the error and has sought the university’s assistance in persuading the recipient to return the excess funds. For now, the costly mistake continues to weigh on the university’s finances.