RBI Monitors Rs 590 Crore Fraud at IDFC First Bank Branch

The Reserve Bank of India (RBI) Governor, Sanjay Malhotra, stated on Monday that the Rs 590 crore fraud reported at an IDFC First Bank branch is not indicative of a systemic issue, assuring that the central bank is closely monitoring the situation.

Following a post-Budget meeting with the finance minister, the RBI governor refrained from commenting on individual banks. IDFC First Bank has suspended four employees after discovering fraudulent activities associated with certain Haryana government accounts at its Chandigarh branch.

The bank is conducting a thorough investigation and aims to recover the funds through legal measures. The Haryana Finance Department has de-empanelled IDFC First Bank, directing the transfer of funds to authorized banks with immediate effect. The incident remains under close scrutiny as the investigation progresses.