RBI Monitors Rs 590 Crore Fraud at IDFC First Bank

The Reserve Bank of India (RBI) is closely monitoring a Rs 590 crore fraud at IDFC First Bank involving certain employees and others in Haryana state government accounts. RBI Governor Sanjay Malhotra reassured there is no systemic issue, and the fraud is confined to specific accounts.

The Reserve Bank of India is keeping a vigilant eye on a substantial Rs 590 crore fraud at IDFC First Bank, Governor Sanjay Malhotra confirmed on Monday. The incident involves certain employees and others at the bank's Chandigarh branch, who have allegedly misappropriated funds from specific Haryana state government accounts.

On Sunday, IDFC First Bank publicly disclosed the fraud, assuring stakeholders that it is isolated to a select group of government-linked accounts and does not involve other customers at the branch. This announcement came as the Finance Minister, Nirmala Sitharaman, addressed the RBI's Central Board of Directors following the budget presentation.

Governor Malhotra emphasized that there is no wider systemic issue at play. He reiterated the bank's position that the fraudulent activities are limited to the identified accounts, providing reassurance to clients and investors of IDFC First Bank.

(With inputs from agencies.)