According to the Monetary Authority of Singapore (MAS), the bank has been censured for the âshortcomings and inadequate managementâ of its technology outsourcing.
DBS Holdings has also been ordered to set aside S$230 million ($170 million) to invest in boosting its IT infrastructure.
An investigation by MAS found that failings in the bankâs technology system were responsible for an outage which meant consumers were unable to access funds from ATMs on July 5th of this year.
Teo Swee Lian, deputy managing director of financial supervision at MAS, said: âMAS takes a serious view of this incident.
âWe expect all financial institutions to put in place a robust technology risk management framework that will ensure the reliability, resiliency and speedy recoverability of the institution's IT systems and infrastructure, whether outsourced or in-house.â
DBS has been ordered to undertake an independent review of the outage by MAS while also redesigning its outsourcing structure to ensure it does not rely on one service provider.
The bank has also been requested to set up a Systems and Network Command Centre as part of the MAS instructions.
By Jim Ottewill