IDFC Bank’s Rs 590 cr Fraud Not a Systemic Issue: Malhotra
Malhotra’s comments come a day after private lender IDFC First Bank on Sunday disclosed that it is investigating a suspected fraud of Rs 590 crore in one of its branches, involving accounts held by Haryana government entities and has alerted the police besides suspending four employees.
By : Falaknaaz Syed
Update: 2026-02-23 15:05 GMT
Mumbai: The Reserve Bank of India (RBI) governor Sanjay Malhotra on Monday said that the central bank is watching the developments around the Rs 590 crore fraud perpetrated at IDFC First Bank and has not found any systemic issue.
“As a policy we do not comment on individual banks or regulated entities. We are watching the developments. There is no systemic issue here,” Malhotra told reporters in New Delhi at the press briefing after the customary post-budget address by finance minister Nirmala Sitharaman to the central board of directors.
Malhotra’s comments come a day after private lender IDFC First Bank on Sunday disclosed that it is investigating a suspected fraud of Rs 590 crore in one of its branches, involving accounts held by Haryana government entities and has alerted the police besides suspending four employees.
The fraud came to light when a particular department of the Haryana government approached the bank seeking closure of its account and transfer of funds to another bank. During this process, bank officials noticed a discrepancy between the amount the government department cited and the actual balance in the account. A preliminary investigation revealed that the fraud was confined to a specific cluster of government-linked accounts operated through the Chandigarh branch and did not spread to other customers of that branch.ENDS.