Latest News on Karnataka Bank
A high-ranking bank employee was taken into custody for alleged fraud.
Vijayawada police in Krishna district, India, have arrested Ganne Somasekhar, an assistant branch manager of Karnataka Bank in Machilipatnam, for fraudulently misusing pledged gold ornaments. Somasekhar, who was responsible for managing the bank’s gold loan portfolio, had embezzled 3,002.8 grams of gold and pawned it with multiple non-banking financial companies (NBFCs) and the bank where he worked in order to secure personal loans.
Police conducted a thorough investigation and recovered 2,603.2 grams of gold from various NBFCs and Karnataka Bank. The actual amount of gold recovered is 86.4% of the total amount misused, showing the success of the police operation. The remaining 399.6 grams of gold is still outstanding and efforts are being made to recover it from other financial institutions.
The arrest of Somasekhar is a significant milestone in the investigation, and his interrogation has helped the police to identify several irregularities in the functioning of the bank’s gold loan portfolio. The investigation is ongoing, and further actions are expected to be taken against other individuals and institutions involved in the fraud.
The misuse of pledged gold ornaments to obtain personal loans is a worrisome phenomenon that has eaten into the trust of the public in financial institutions. The case highlights the need for stricter regulations and supervision to prevent such frauds in the future. It also underscores the importance of effective internal controls and risk management systems in financial institutions to prevent such instances of fraud and embezzlement.
Mangaluru: Karnataka Bank marks its 101st Founder’s Day by prioritizing customer education and awareness.
Karnataka Bank, a leading bank in India, celebrated its 101st Founder’s Day on August 18, 2022, with a focus on educating customers and promoting financial literacy. The event was held at the bank’s Mangaluru head office.
The bank’s founder, Attimatti A. Rangan, founded the bank in 1924 with the aim of providing financial services to the people of Karnataka. Since then, the bank has grown to become one of the top banks in the country, with over 800 branches and a large network of ATMs.
The Founder’s Day celebration was marked by a series of events, including a grand function at the bank’s head office, where customers were educated on various aspects of banking, including digital banking, mobile banking, and other services offered by the bank. The event was attended by over 1,000 customers, who were given a comprehensive understanding of the bank’s services and facilities.
The bank’s management team, including its chairperson, Mahabaleswara M S, and its managing director, P V Suresh, were present at the event, which was also attended by many dignitaries, including local MLA and former MP.
The bank’s digital banking services, such as internet banking, mobile banking, and specialty banking products, were showcased, and the bank’s banking app was launched on the occasion. The events also featured a customer gets-together, where the bank’s customers interacted with the bank’s management and staff, and shared their experiences.
The bank also launched a unique initiative, ‘PRAJWAL’, a digital platform that enables customers to access various banking services, including account opening, account statement, and balance enquiry, through a mobile app. The platform is designed to simplify the banking experience for its customers.
Suresh, the managing director of the bank, said that the bank was committed to delivering innovative and customer-centric services to its customers, and that the Founder’s Day celebration was an opportunity to educate and engage with its customers on various aspects of banking.
The event was sponsored by the bank’s CSR partner, the Karnataka State AMC, which supports various social welfare initiatives in the state. The event was also attended by local media persons, who gave live coverage of the event.
Overall, the 101st Founder’s Day celebration of Karnataka Bank marked an important milestone in the bank’s history, as it continued to focus on educating its customers and providing them with innovative and customer-centric services.
Karnataka Bank Seeks RBI Intervention to Reverse Suspicious Cross-Border UPI Transaction of ₹18.87 Crore
Karnataka Bank has recently reported to the Reserve Bank of India (RBI) a suspicious cross-border Unified Payments Interface (UPI) transaction worth Rs 18.87 crore. The bank claims that it has suffered a loss of Rs 18.57 crore due to an UPI reconciliation issue, which resulted in the irregular transaction.
According to reports, the transaction in question was observed on June 12, 2022, where an amount of Rs 18.87 crore was debited from the bank’s account and credited to an unknown entity. The bank’s internal investigation revealed that the transaction was suspected to be a cross-border payment, which is prohibited under the RBI’s guidelines.
The bank has requested the RBI to reverse this transaction, as it was made without its consent. The RBI has been informed that the bank is yet to receive the required information and confirmation from the Reserve Bank of India (RBI) to proceed with the reversal of the transaction.
This incident highlights the potential risks associated with the UPI platform, which has been growing in popularity in India. With the rapid growth of digital payments in the country, the RBI has been working to strengthen the security measures to prevent such incidents from occurring. However, it is essential for banks and financial institutions to be vigilant and take necessary steps to protect themselves from such threats.
The Karnataka Bank’s experience serves as a wake-up call for other banks and financial institutions to be cautious and proactive in monitoring their transactions to prevent similar incidents. The RBI needs to take this incident as an opportunity to revisit and strengthen its guidelines and regulations to ensure the security and integrity of the UPI platform.
In conclusion, the Karnataka Bank’s report to the RBI regarding the suspicious cross-border UPI transaction of Rs 18.87 crore is a matter of concern and a reminder of the importance of robust security measures in the digital payment landscape. The RBI needs to take concrete steps to mitigate such risks and ensure the safety and security of transactions on the UPI platform.
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Karnataka Bank alerts RBI to a suspicious cross-border UPI transaction totalling Rs 18.87 crore.
Karnataka Bank has reported a suspicious cross-border UPI (Unified Payments Interface) transaction of Rs 18.87 crore to the Reserve Bank of India (RBI). According to reports, the bank has requested the RBI to reverse the transaction, which is suspected to be an illegal act.
The transaction in question is believed to have taken place on an international payment gateway, which is not a valid or authorized platform for UPI transactions. Karnataka Bank has alleged that the transaction was initiated from a foreign IP address, which is not a legitimate user of the platform.
The bank has claimed a loss of Rs 18.57 crore due to this reconciliation issue, which has resulted in the bank’s balance becoming negative. The bank has requested the RBI to investigate the matter and take necessary action to recover the loss.
This incident highlights the vulnerability of the UPI system, which is widely used for online transactions in India. The RBI’s oversight and regulations are being questioned, as such a large-scale irregularity could have gone unnoticed.
The bank has also requested the RBI to take necessary steps to prevent such incidents in the future, particularly in the case of cross-border transactions. This is a concern, as UPI transactions are becoming increasingly popular, and such incidents can have serious consequences, including financial and reputational damage to the bank.
The RBI has not yet commented on the matter, but the Karnataka Bank’s action is a wake-up call for the regulator and the banking industry as a whole. The incident highlights the need for greater vigilance and stricter regulations to ensure the security and integrity of the UPI system.
Karnataka Bank to mark its founders’ day on February 18 with a special celebration
Karnataka Bank is set to celebrate its founders’ day on February 18 at its head office in Mangaluru, with a special address by Madhusudan Sai, a humanitarian and spiritual teacher. Sai has been working to uplift people through various initiatives, including free nutrition, education, and health care, since 2012. His global humanitarian mission has spanned 80 countries. The event will be held at 4 p.m. and will be attended by the bank’s chairman, P. Pradeep Kumar, and its Managing Director and CEO, Srikrishnan H.
The address by Sai will be followed by a Carnatic music concert featuring Vidwan P. Unnikrishnan on the vocal and Vidwan Shashank Subramanyam on the flute. This unique blend of spirituality and music is expected to attract a large audience. Karnataka Bank’s founders’ day celebration is an annual event that marks the anniversary of the bank’s inception. This year’s event is being celebrated with a special focus on social service and spiritual growth. The bank’s aim is to promote a sense of community and bring people together in the spirit of service and selfless work.
The event is expected to be a thought-provoking and inspiring experience for all those who attend. As a way to give back to the community, Karnataka Bank is using its founders’ day to highlight the important work being done by Madhusudan Sai and his mission. The bank hopes to inspire more people to join hands in making a positive difference in the world. Overall, the founders’ day celebration is expected to be a memorable and enriching experience for all involved.