₹1,00,00,00,00,00,000 Credited by Mistake: Inside Karnataka Bank’s Fat Finger Error That Shocked RBI

A simple typing mistake has snowballed into a major topic of national discussion. A "fat finger error" involving ₹1 lakh crore at Karnataka Bank has caught the attention of the Reserve Bank of India (RBI), which is now investigating how such a massive mistake occurred.

₹1 Lakh Crore Mistakenly Credited to Dormant Account

The incident dates back to August 8, 2023, when ₹1 lakh crore was accidentally transferred to a dormant savings account due to a manual entry error. The matter was first reported by Moneycontrol, but it resurfaced this year after RBI's annual audit brought the case under renewed scrutiny.

According to internal records, the incorrect transaction occurred at 5:17 PM on August 9, 2023, and was reversed by 8:09 PM the same day. Fortunately, since the account was inactive, there was no financial loss. However, the magnitude of the error - and the delayed reporting - has raised serious questions about the bank's internal control systems.

Delayed Reporting Raises Questions

The bank's risk management department reported the incident to its board only on March 4, 2024, nearly six months later. A follow-up report and PowerPoint presentation were submitted on March 28, 2024, outlining the error, corrective measures, and risk control improvements.

Despite these internal actions, the issue resurfaced during an October 2024 board meeting, where RBI officials sought clarity on the delay in reporting and the steps taken to strengthen operational oversight.

RBI and Internal Audit Underway

In response, the bank conducted a comprehensive IT systems audit with the help of a Certified Information Systems Auditor (CISA) expert. The audit aimed to pinpoint the exact cause of the error and recommend preventive measures to avoid future lapses.

Following the review, four to five senior officials were reportedly held accountable and removed from their roles. The RBI is now examining how such a large transaction could occur without immediate detection, and whether existing internal safeguards are adequate.

Bank's Official Statement

In a statement, Karnataka Bank said,"This was an old operational issue identified and corrected promptly without any financial loss. Our internal audit processes detected it, and the RBI was informed during regular reporting cycles."

The bank emphasized that its core banking and risk systems are robust and that all necessary corrective measures have been implemented.

What If It Wasn't a Dormant Account?

Banking experts note that the impact could have been catastrophic if the mistakenly credited account had been active. "If the ₹1 lakh crore had landed in an operational account, the bank could have faced an immediate liquidity and compliance crisis," said a senior banking analyst.

The incident also comes amid leadership changes. In July 2025, both MD & CEO Srikrishnan H and Executive Director Shekhar Rao resigned, alongside other senior officials.

For the 2024-25 fiscal year, Karnataka Bank reported total loans worth ₹76,541 crore and deposits amounting to ₹1,04,807 crore. The bank also raised ₹600 crore in capital during March 2024.

What is Fat Finger Error?

In financial markets like the stock or foreign exchange market, a fat-finger error refers to a mistake made while entering data - such as placing an order that's much larger than intended, selecting the wrong stock or contract, or entering an incorrect price due to a typing or input error.