Karnataka Bank has reported a fraud to RBI amounting to Rs 13.26 crore in the fund based working capital facility that was extended to SRS Finance, on account of diversion of funds.
The said working capital facility was extended by the Bank under Multiple Banking arrangement and necessary accounting treatment has already been given as per the extant RBI Guidelines.
Karnataka Bank operates as a private sector bank. Its products and services include current account, demand, time, cumulative, cash certificates, insurance linked savings bank deposits, resident foreign currency accounts and senior citizens deposit schemes.
