Update: Bank of England launches investigation into CHAPS system failure

The Bank of England is to launch an independent investigation after a systems glitch forced it to temporarily suspend CHAPS transfers on Monday.

The Real Time Gross Settlement (RTGS) platform, which underpins large value CHAPS payments such as house purchases, was taken offline due to a ‘technical issue’ yesterday morning. The outage is believed to be related to planned system maintenance during the weekend.

The Bank of England said in a statement that the RTGS system was brought back online during Monday afternoon, with CHAPS operating hours extended from 4pm to 8pm to enable payments to be processed.

The Governor of the Bank of England, Mark Carney, has also announced an investigation into the failure.

"The review will cover the causes of the incident, the effectiveness of the Bank’s response and the lessons learned for future contingency plans. Its findings will be presented to Court which will then publish the full report and the response," the statement read.

The CHAPS (Clearing House Automated Payments System) system was responsible for processing over £70 trillion last year, and is used by 5,000 financial institutions.

Copyright © 2014 IDG Communications, Inc.

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