By Admin 
IDFC First Bank Share: Shares of IDFC First Bank Limited are in bad shape today. On Monday, February 23, the bank’s shares reached the lower circuit of 15 percent. The main reason for the fall in shares is the fraud of Rs 590 crore.
What is the matter?
This Mumbai-based private bank informed the exchange on Sunday that a department of the Haryana government had asked to close one of its accounts in the Chandigarh branch of the bank and transfer the money kept in it to the account of another bank. During this process, when the bank reconciled the accounts, it was seen that the actual balance was much less than the amount of money that should be there in the account as told by the department. Initial investigation revealed a difference of about Rs 590 crore in several accounts related to the Haryana government.
Who is behind the fraud?
Now the question arises that who misappropriated such a huge amount of money? The bank says that this is internal fraud. Some employees of the bank along with outsiders withdrew or transferred money from the account in an unethical manner. At present, the matter is being investigated and the bank has immediately suspended four employees until the investigation is completed. The government has also taken a tough stance on this incident.
Haryana Government has ordered all its departments to withdraw all their money from IDFC First Bank and AU Small Finance Bank and deposit it in other government banks. Meanwhile, it is a matter of relief for the common customers that this fraud will not have any impact on the savings accounts or fixed deposits of the general public. The bank has said that this fraud is limited only to special accounts of Haryana Government.
What is RBI’s stand on the matter?
Reserve Bank of India (RBI) Governor Sanjay Malhotra on Monday said that it is monitoring the developments related to the Rs 590 crore fraud case at IDFC First Bank and there is no systemic problem in it. “We are keeping an eye on the developments, there is no systemic problem in this,” he told reporters at a press conference organized after the traditional address given by Finance Minister Nirmala Sitharaman to the Central Board of Directors of RBI after the Union Budget.
Earlier, IDFC First Bank Managing Director and Chief Executive Officer (CEO) V. Vaidyanathan said on Monday that a fraud of Rs 590 crore related to the accounts of Haryana government was carried out through the collusion of the bank’s employees and outside parties. This issue is limited to one entity and one customer group. This is not a case of any systemic ‘reporting’ error.
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