RBI imposes Rs. 4 crore fine on Karnataka Bank

The Reserve Bank of India (RBI) levied a fine of Rs. 4 crore on Karnataka Bank for failure to comply with regulatory norms regarding the implementation of four of the SWIFT-related operational controls directed by RBI. 

Banks use a global messaging software called the Society for Worldwide Interbank Financial Telecommunications (SWIFT) for transactions. An example of the misuse of this software is the PNB fraud. Consequently, the RBI has been exercising heavier scrutiny and tighter controls on financial transactions in the Indian banking system.    

Previously, on Saturday, RBI levied fines of Rs. 3 crore on Union Bank, Rs. 2 crore on Dena Bank and Rs. 1 crore each on IDBI and SBI.

Meanwhile, on Friday, the stock of Karnataka Bank closed at Rs. 115.60, up 3.08 per cent.