RBI: No systemic issue in ₹590-crore IDFC First Bank fraud, says governor
RBI: No systemic issue in ₹590-crore IDFC First Bank fraud, says governor
IDFC First Bank reported a ₹590-crore fraud tied to a Chandigarh branch within Haryana government accounts; RBI says it’s not systemic and is monitoring developments.
The Reserve Bank of India (RBI) says there is no systemic issue in the ₹590 crore fraud at IDFC First Bank and that it is closely watching the developments. RBI Governor Sanjay Malhotra made the remark during a press briefing after the Finance Minister’s post-budget address to the RBI board. IDFC First Bank disclosed the fraud on Sunday, noting it was carried out by a specific group of employees and others at a Chandigarh branch connected to Haryana State Government accounts. The bank stressed that the fraud is confined to those accounts and does not extend to other customers of the Chandigarh branch. The bank’s Managing Director and CEO V. Vaidyanathan said the lapse appears limited in scope and stemmed from internal collusion rather than a broader systemic weakness, adding that provisions will be recognised in line with policy to address stress upfront. The incident highlights the ongoing importance of strengthening governance around government-linked accounts and branch-level risk controls while authorities investigate and determine accountability.
