Bank of Valletta reverses duplicate stipend payments after glitch

Updated 1.59pm

Bank of Valletta has "reversed" all duplicate salary and stipend payments after a number of University of Malta students woke up to an unexpected windfall on Tuesday morning when they received their monthly stipend payment four times over due to a banking glitch.

Students from a number of faculties, including medicine, architecture, law and arts, reported seeing four identical stipend payments deposited into their bank accounts.

A subsequent message from the ministry alerted the recipients to the error, saying it will be rectified later.

The amounts varied according to the course and faculty. Architecture students, whose monthly stipend is €228.14, received more than €900 in total, while medicine students reported receiving around €900. One arts student said her usual €135.93 stipend was paid four times, leaving her with €543 in her account.

In a statement issued just before 2pm, Bank of Valletta said it had "fully resolved" the issue affecting the stipend and salary payment processing run.

"All duplicate payments arising from the technical issue have now been successfully reversed, and all impacted accounts have been restored to their correct balances," Bank of Valletta said.

The bank added it had "acted immediately to contain the matter and implement a structured and controlled remediation process". 

It insisted corrections were completed "efficiently".

"At no point were customers' legitimate stipend or salary entitlements affected," Bank of Valletta said.

While acknowledging the "inconvenience" the technical issue may have caused to its customers, "particularly students who rely on these payments", the Bank thanked customers for their "patience and understanding".

It added that a review "remains ongoing" to establish the root cause of the incident.

"Any necessary enhancements to systems and controls will be implemented to further strengthen processes and minimise the risk of recurrence."

A Bank of Valletta spokesperson also confirmed with Times of Malta internal investigations showed that "apart from student payments, there were also a number of salary payments that were processed more than once". 

Not all students received the extra stipend, leading to questions about whether the issue was limited to customers of a particular bank.

When contacted on Tuesday morning, Education Minister Byron Camilleri told Times of Malta the problem was caused by a banking glitch. The ministry sent a message to recipients later, alerting them about the error. 

A Bank of Valletta spokesperson had earlier confirmed that the issue was caused by a technical error during a payment run, resulting in multiple credits being deposited into a number of accounts. The bank said customers did not need to take any action, as any duplicate payments would be reversed automatically.

Any incorrect payments will be reversed by the bank automatically.

The bank clarified that the original stipend payments will remain unaffected, and only duplicate amounts will be adjusted. Reversals will be processed over the coming days, and the bank is taking the necessary steps to resolve the matter swiftly.

In the 2026 Budget, the government promised to increase student stipends by 15%. The increase is intended to help students meet rising living costs and ease financial pressures.