IDFC First Bank employees at Chandigarh branch colluded in ₹590 crore fraud involving Haryana govt-linked accounts

Core Viewpoint - IDFC First Bank has reported a ₹590 crore fraud involving four employees at its Chandigarh branch, primarily affecting government-linked accounts in Haryana [1][2]. Group 1: Fraud Discovery and Impact - The fraud was identified following a preliminary internal assessment after a request from a Haryana Government department for account closure and fund transfer revealed discrepancies [5]. - The fraudulent activities are confined to a specific group of government-linked accounts and do not extend to other customers of the Chandigarh branch [5]. - The total amount under reconciliation across the identified accounts is approximately ₹590 crore [1]. Group 2: Actions Taken by the Bank - IDFC First Bank has informed its regulator, filed a police complaint, and is cooperating with law enforcement agencies [4]. - The bank is appointing an independent external agency to conduct a forensic audit and has notified its statutory auditors about the fraud [5]. - Four suspected employees have been suspended pending investigation, and the bank plans to pursue strict disciplinary, civil, and criminal actions against those involved [6]. Group 3: Internal Review and Monitoring - A Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds was convened to address the issue [6]. - Meetings of the Audit Committee and the Board of Directors were held to discuss the matter and ensure proper oversight [6]. - The bank has sent recall requests to beneficiary banks to lien mark balances in suspicious accounts [6].