Daijiworld Media Network - Mumbai

Mumbai, Feb 23: The Reserve Bank of India (RBI) is closely monitoring developments related to the Rs 590-crore fraud at IDFC First Bank and there is no systemic issue arising from the incident, RBI Governor Sanjay Malhotra said on Monday, February 23, 2026.

IDFC First Bank had on Sunday, February 22, 2026, disclosed that a fraud amounting to Rs 590 crore had been committed by certain employees and others at a specific branch in Chandigarh, involving a particular set of Haryana State Government accounts.

“We are watching the development; there is no systemic issue,” Malhotra told reporters during a press briefing following the customary post-budget address by Nirmala Sitharaman to the RBI’s Central Board of Directors.

In its statement, IDFC First Bank clarified that the fraud is confined to a specific group of government-linked accounts of the Haryana Government operated through the Chandigarh branch. The bank emphasised that the issue does not extend to other customers of the branch.

The RBI’s assurance comes amid concerns over the impact of the fraud on the banking system, with the central bank reiterating that the matter remains isolated and does not pose broader financial stability risks.