KARNATAKA BANK LTD. Identifies Deficiencies in Suspicious UPI Global Transactions Reconciliation Process: Loss of Approx. INR 18.57 Crores

KARNATAKA BANK LTD. has informed about certain deficiencies found in the reconciliation process of suspicious UPI Global transactions. The Bank confirmed that this issue has no impact on its operations or customer servicing. The nature of the process failure includes the reversal of cross-border UPI transaction amounts to customers, with an estimated impact of approximately INR 18.87 crores on the Bank. The estimated loss amount involved is approximately INR 18.57 crores, net off immediate recovery. The Bank has reported the matter to the Reserve Bank of India on February 17, 2025, and will initiate necessary actions for recovery. Additional control processes have been put in place to prevent recurrence.