IDFC FIRST Bank fraud: ‘Watching the developments, no systemic issue’, says RBI Governor

3 min readNew DelhiFeb 23, 2026 03:39 PM IST

A day after IDFC FIRST Bank reported a Rs 590-crore fraud to stock exchanges, Reserve Bank of India Governor Sanjay Malhotra said the central bank is watching the developments and there is “no systemic issue”.

“We do not comment on any individual bank or regulated entity. We are watching the developments. There is no systemic issue,” he told reporters in a meeting after the customary post-Budget meeting of the RBI’s central board of directors.

IDFC First Bank Sunday disclosed a Rs 590-crore fraud committed by its employees and others in accounts held by the Haryana government with the bank. The bank has reported the matter to the banking regulator RBI and also filed a police complaint.

The bank said in a statement that “unauthorised and fraudulent activities have been carried out by certain employees at a particular branch in Chandigarh in a specific set of Haryana state government accounts and potentially involving other individuals/entities/ counterparties”.

On Monday, IDFC Bank’s shares tanked 10% to Rs 75.21 when the market opened for trading. At 1502 IST, shares of IDFC Bank were trading 16.21% lower at Rs 69.97 on NSE.

In a conference call on Monday, IDFC Bank MD and CEO V Vaidyanathan said the bank “will spare no one and will get to the bottom” of the fraud. “We will move diligently and very fast… we will scan every nook and corner to see any employees are involved,” he said.

In the fraud, certain “discrepancies were observed in the amount mentioned vis-à-vis the balance in an account after the bank received a request from a Haryana government department for closure of its account and transfer of funds to another bank”, the bank’s statement said. From February 18 onwards, certain other Haryana Government entities engaged with the bank with regard to their respective accounts with the bank. During this process, differences were observed between the balances in the account and the balances as mentioned by the Haryana Government entities holding accounts with the bank,” it said.

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The bank has appointed KPMG to initiate an independent forensic audit in this matter. Four officials have been suspended pending an investigation. The bank said it would pursue strict disciplinary, civil, and criminal action against the employees and others.

Aanchal Magazine is a Deputy Associate Editor with The Indian Express, serving as a leading voice on the macroeconomy and fiscal policy. With 15 years of newsroom experience, she is recognized for her ability to decode complex economic data and government policy for a wider audience.
Expertise & Focus Areas: Magazine’s reporting is rooted in “fiscal arithmetic” and economic science. Her work provides critical insights into the financial health of the nation, focusing on:

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