The Reserve Bank of India on Monday said that it does not see any major or systemic threat from the IDFC First Bank fraud case. In a joint press conference with Finance Minister Nirmala Sitharaman, RBI Governor Sanjay Malhotra said that we are continuously monitoring the situation, there is no major or systemic problem at present. The bank has sufficient capital.
Private bank has detected irregularities of about Rs 590 crore in some accounts of Haryana Government in its Chandigarh branch. After this, the bank’s shares fell by about 20%, which is the biggest fall since March 2020. Due to this decline, investors had to suffer a loss of more than Rs 14 thousand crore.
IDFC has said that it has started investigation and is planning to recover the money by taking legal action and action on the department label. The bank said in its filing that based on preliminary internal investigation, the matter is limited to certain accounts of the Haryana government linked to this branch in Chandigarh. This does not apply to other customers of the same branch. During matching of identified accounts, an amount of approximately Rs 590 crore has been revealed.
What is the bank’s stand?
The bank further said that as more information becomes available, the real impact will become clear only after the investigation of claims, the process of freezing suspicious accounts in other banks and fixing the responsibility of other institutions involved in the fraud. The process of bringing back the money through legal means will also continue.
It was also said in the filing that the bank has taken some steps. Four suspected officers have been suspended until the investigation is completed. The bank said that strict disciplinary, civil and criminal action will be taken against responsible employees and outsiders as per applicable law.
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