New Delhi: Reserve Bank of India Governor Sanjay Malhotra today said that the central bank is monitoring the Rs 590 crore fraud case in IDFC First Bank. After Finance Minister Nirmala Sitharaman addressed the RBI's central board of directors, the governor assured reporters that this is not a systemic problem, that is, it will not affect the entire banking system.
IDFC First Bank had disclosed on Sunday that some employees and others in a particular branch in Chandigarh have conspired to defraud the Haryana government of Rs 590 crore in its accounts. The bank has clarified that this case is limited to a specific group of accounts belonging to the Haryana government and the money of other customers of the Chandigarh branch is completely safe.
Governor Sanjay Malhotra said, “We are monitoring the entire incident and there is nothing to panic about.” The bank administration has also reiterated that the irregularities occurred only in the linked accounts of the Haryana government. The police and investigating agencies are now investigating how the fraud was committed and which employees were involved in it.