IDFC First Bank, AU Small Finance Bank de-empanelled for govt business in Haryana

Core Viewpoint - The Haryana government has de-empanelled IDFC First Bank and AU Small Finance Bank for government business due to a significant fraud incident involving IDFC First Bank, which disclosed a ₹590-crore fraud [9][10]. Group 1: Government Actions - The Haryana government has issued a circular stating that no government funds will be parked, deposited, invested, or transacted through IDFC First Bank and AU Small Finance Bank [9]. - All concerned departments and organizations are required to take immediate action to transfer balances and close accounts maintained with these banks [4][9]. - The circular mandates that all Departments, Corporations, Boards, and PSUs must reconcile their respective bank accounts in accordance with the guidelines issued by the Finance Department by March 31, 2026 [8][10]. Group 2: Compliance and Oversight - The Finance Department has noted that certain banks are not adhering to the conditions for fixed deposits, leading to financial losses for the government [5][6]. - Departments and Corporations are instructed to ensure fixed deposits are placed according to approved terms and conditions and to verify compliance with deposit instructions regularly [7][10]. - A compliance report, certified by the competent authority, must be submitted to the Finance Department by April 4 [8][10].