Haryana Scraps IDFC First and AU Small Finance Banks Over Alleged Fraud

The Haryana government has severed its financial dealings with IDFC First Bank and AU Small Finance Bank following a significant fraud revelation. According to an official circular, no further government funds will be parked with these banks.

This decisive action comes after IDFC First Bank disclosed a Rs 590-crore fraud in accounts owned by the Haryana government. The bank has reported the matter to the regulator and filed a police complaint.

All relevant departments have been instructed to transfer their balances and close accounts with the affected banks. The government emphasized strict adherence to guidelines for future fixed deposits and mandated a thorough reconciliation of accounts by March 31, 2026.