A routine request to close a bank account has unraveled one of the most significant banking frauds in recent months. IDFC First Bank recently disclosed a ₹590 crore discrepancy in accounts belonging to the Haryana Government at its Chandigarh branch.
The Red Flag: The issue came to light on February 18, 2026, when a Haryana government department requested to transfer funds and close its account. The bank’s records showed a balance significantly lower than what the department’s books claimed.
Key Facts of the Case:
- Scale of Fraud: ~₹590 crore (comprised of ₹490 crore identified through reconciliation and ₹100 crore self-identified).
- Internal Fallout: Four bank employees have been suspended. The bank alleges collusion between staff and external parties.
- Government Action: The Haryana Government has de-empanelled both IDFC First Bank and AU Small Finance Bank with immediate effect.
- Stock Market Impact: The bank’s shares plummeted by 20%, hitting the lower circuit and wiping out over ₹14,000 crore in investor wealth.
Is Your Money Safe? Managing Director V. Vaidyanathan and the RBI Governor have both stated that this is an isolated incident confined to a specific branch and client group. The RBI confirmed there is “no systemic risk” to the Indian banking sector. However, the incident serves as a stark reminder for institutional and individual depositors to conduct regular monthly reconciliations.
