IDFC First Bank reports Rs 590 crore fraud in Haryana government accounts

Group 1 - IDFC First Bank Ltd reported a discrepancy of Rs 590 crore in deposits linked to the Haryana Government at its Chandigarh branch, leading to the suspension of four employees pending investigation [4] - The Haryana Government has mandated the closure of all accounts with specific private banks, including IDFC First Bank and AU Small Finance Bank, effective February 18, 2026, requiring departments to shift funds to nationalised banks [3][4] - The bank has initiated a forensic audit and informed its statutory auditors, while also sending recall requests to beneficiary banks to lien-mark balances in suspicious accounts [4] Group 2 - The discrepancy is confined to a specific group of Haryana Government-linked accounts at the Chandigarh branch and does not extend to other customers at the branch [4] - The eventual impact of the discrepancy will depend on the validation of claims, recoveries, and the outcome of legal proceedings [4] - The move to close accounts with private banks is aimed at enforcing compliance with fund-parking guidelines and ensuring monthly reconciliations to safeguard public money [3][4]