Karnataka Bank Appoints Forensic Auditors To Review Suspicious Global UPI Transactions

Karnataka Bank has appointed an external agency to conduct a forensic review of its suspicious global UPI transactions.

This move is based on direction by the bank's board and the Reserve Bank of India.

The appointment concerned certain deficiencies in the reconciliation process, related to suspicious global UPI transactions reported on Feb. 17, according to an exchange filing on Wednesday.

Pipara & Co., a chartered accountant firm in Ahmedabad, is the external agency appointed as forensic auditors to review and report on the matter.

"It is reiterated that the incident reported earlier or the forensic audit being initiated have no impact on the operations of the bank nor on customer servicing," the bank said in the filing.

On Feb. 17, the bank had informed exchanges that it had reversed suspicious cross border UPI transactions worth Rs 18.87 crore to its customers.

Reversal was done as these transactions could not be processed, as it was reflected during the reconciliation exercise with National Payments Corporation of India, undertaken by the bank.