Last Updated:
RBI Governor Sanjay Malhotra confirmed no systemic risk from the Rs 590 crore fraud at IDFC First Bank’s Chandigarh branch linked to Haryana government accounts.
RBI Monitoring Rs 590 Crore Fraud At IDFC First Bank, Assures No Wider Impact
The Reserve Bank of India (RBI) is closely monitoring developments surrounding the Rs 590 crore fraud reported by IDFC First Bank, with no broader systemic concern arising from the incident, said Governor Sanjay Malhotra told reporters during a press briefing held after the customary post-Budget address by Finance Minister Nirmala Sitharaman to the RBI’s Central Board of Directors.
“As a policy, we do not comment on any individual bank or regulated entity. We are watching the development. There is no systemic kind of issue” Malhotra said, after being asked upon IDFC First Bank’s fraud case, in which the private lender has reported a fraud of Rs 590 crore with an account linked with the Haryana government at the Chandigarh branch.
The irregularities were linked to a defined set of Haryana state government accounts handled at that branch. The Haryana government has de-empaneled IDFC First Bank and AU Small Finance Bank with immediate effect.
Following the update, the bank’s shares crashed 20 per cent on Monday, bearing a heavy loss.
Bank Assures Limited Impact
IDFC First Bank clarified in its disclosure that the fraud is “confined to a specific group of government-linked accounts within Haryana government” operated through the Chandigarh branch. The bank emphasized that the issue does not extend to other customers serviced by the same branch.
The lender’s statement sought to reassure stakeholders that the matter is restricted in scope and does not reflect a wider operational breakdown. The RBI’s remarks further underlined that, from a regulatory standpoint, the episode does not pose systemic risks to the banking sector.
The development comes amid heightened regulatory focus on governance standards and internal controls within financial institutions. While investigations and internal reviews are expected to continue, the central bank’s position signals confidence that the broader banking system remains stable.
Factoring Revised GDP, CPI
RBI Governor Sanjay Malhotra on Monday said the revision of the inflation targeting range, following the update in the Consumer Price Index (CPI) base year, is currently under examination.
However, he clarified that while the methodological changes in the CPI are significant in terms of coverage, representativeness and volatility, they are “not substantial” enough on their own to warrant a change in the inflation target.
Speaking at a press conference after the customary post-Budget meeting with the Finance Minister, Malhotra was responding to a query on whether the inflation target band would be revised after the base year update.
“The RBI had earlier published a discussion paper and submitted its recommendations to the government. The decision on the target will be announced by the authorities,” he said.
The Governor added that the Reserve Bank’s forthcoming projections will incorporate the revised base year and updated methodology of both the CPI and Gross Domestic Product (GDP).
(With PTI Inputs)
Click here to add News18 as your preferred news source on Google.
February 23, 2026, 12:59 IST
Read More
