IDFC First Bank has uncovered a massive suspected ₹590 crore fraud at its Chandigarh branch, where unauthorised activities by certain employees targeted specific accounts linked to Haryana government departments.
The scam came to light on 18 February 2026 when state officials requested account closures and noticed stark mismatches between claimed and actual balances, prompting the bank to suspend four staff members, initiate an internal probe, forensic audit, and police complaints.
No other customers are affected, with the bank assuring swift legal action against those involved, while Haryana entities seek clarity on fund discrepancies.
Fraud Surfaces in Routine Closures
The trouble began during standard procedures when a Haryana government department approached the branch to close its account and transfer funds. What should have been a straightforward process revealed alarming gaps—declared balances far exceeded the actual amounts held.
Deeper scrutiny from 18 February uncovered similar irregularities across other state-linked accounts at the same location, painting a picture of deliberate manipulation that eroded trust in everyday banking operations for public bodies.
Swift Action and Ongoing Probe
In response, IDFC First Bank immediately suspended four employees suspected of involvement and notified its Special Committee of the Board for Monitoring Frauds. The lender has engaged an external agency for a thorough forensic audit to quantify the full extent of the ₹590 crore loss and trace any external accomplices.
Police complaints have been filed, with the board reviewing the matter on 20-21 February, underscoring the bank’s commitment to isolating the issue and pursuing strict disciplinary, civil, and criminal measures without impacting broader operations.
The Logical Indian’s Perspective
This episode highlights the fragility of financial systems handling public funds, calling for heightened vigilance, ethical training, and seamless collaboration between banks and government bodies to protect citizens’ interests. By championing transparency and accountability, we can nurture a landscape of kindness, empathy, and mutual trust that prevents exploitation and fosters positive change.
What steps should regulators take to ensure such public-private financial ties remain secure and trustworthy—share your ideas to spark constructive dialogue?
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