Mumbai: IDFC First Bank shares fell sharply after a Rs 590 crore fraud was reported at its Chandigarh branch. The stock dropped nearly 20 percent in a single trading session, hitting the lower circuit. Investors lost more than Rs 14,000 crore in market value.
The issue came to light when some Haryana government departments requested closure of their accounts. During reconciliation, the bank found that its records did not match the government’s records. An internal probe revealed that a few employees at the Chandigarh branch had carried out unauthorised transactions, leading to a deposit mismatch of about Rs 590 crore.
The bank has clarified that the fraud is limited to specific accounts linked to the Haryana government. It does not involve regular customers, savings accounts, fixed deposits, credit cards, or loan accounts.
What Did RBI Say?
RBI Governor Sanjay Malhotra said there is no systemic risk to the banking system. He described the matter as serious but limited in nature. The RBI is closely monitoring the situation.
According to the regulator, India’s banking system remains strong and stable. Necessary steps will be taken if required. Customers and investors have been advised not to panic.
What Should IDFC First Bank Customers Do?
The bank has assured that normal banking services continue without disruption.
- Check updates only from the bank’s official app, website or branch.
- Call customer care at 1800-10-888 if you have doubts.
- Do not withdraw money in panic, as large withdrawals can create unnecessary stress.
- Never share your password or OTP with anyone.
- Avoid clicking on unknown links or responding to suspicious calls.
If you have more than Rs 5 lakh in deposits, consider spreading your money across different banks. Under DICGC rules, deposits up to Rs 5 lakh per person per bank are insured.
What Should You Avoid?
- Do not believe rumours on social media or WhatsApp.
- Do not rush to shift money without careful thinking.
- Do not share personal banking details with unknown callers.
Overall, while the fraud has raised questions about internal controls, customer deposits remain safe. The bank is under RBI supervision, and the system remains stable.
