IDFC First Bank Probes Suspected ₹5,900 Cr Fraud

IDFC First Bank has announced it is investigating a suspected fraud of about $65 million (₹5,900 crore) involving accounts of Haryana government entities. The issue surfaced when one of the departments attempted to close its account and discrepancies in balances were discovered.

The first outlet to report the IDFC First Bank suspected fraud case was PTI (Press Trust of India). Multiple publications including The Hindu BusinessLine, Rediff, and Times of India later carried the story, but they all cited PTI as the original source of the disclosure.  

Key Details

• Branch involved: Chandigarh
• Employees suspended: Four staff members pending investigation
• Nature of fraud: Discrepancies in reconciliation of balances in government accounts
• Actions taken:
  • Police have been alerted
  • A Special Committee was convened on February 20, 2026
  • The Audit Committee and Board of Directors met on February 21
  • An independent forensic audit will be appointed
  • Recall requests sent to beneficiary banks to lien-mark suspicious balances

Why This Matters

This case highlights vulnerabilities in internal controls at banks, especially when handling large government accounts. It also raises questions about oversight mechanisms in public sector financial management.