Karnataka Bank faces RBI action for violating regulatory norms

Private sector Karnataka Bank Monday said the RBI has slapped a fine of Rs 4 crore on the bank for violating regulatory norms. The Reserve Bank of India has levied an aggregate penalty of Rs 40 million on the bank for delayed implementation of four of the Swift related operational controls.

Swift is the global messaging software used for transactions by the financial entities. Notably, the massive Rs 14,000 crore fraud at the PNB was a case of misuse of this messaging software.

Post the PNB fraud, which came to light in February 2018, the RBI has been tough on banks to tighten all kind of their transactions. Earlier on Saturday, four banks -- SBI, Union Bank of India, Dena Bank and IDBI -- had informed exchanges about monetary penalty slapped on them by the regulator for non-compliance with various directions.

Fine of Rs 3 crore was imposed on Union Bank, Rs 2 crore on Dena Bank, and Rs 1 crore each on IDBI and the SBI.