IDFC First Bank Employees Embroiled in ₹590 Crore Fraud: A Timeline of Key Events

IDFC First Bank Fraud: ₹590 Crore Scam Rocks Haryana Government Accounts

Key Developments:

• ₹590 crore suspected fraud targeting bank accounts linked to the Haryana state government.
• Four IDFC First Bank employees suspended pending investigation.
• AU Small Finance Bank de-empanelled for all government business in Haryana state.
• IDFC First Bank and AU Small Finance Bank under scrutiny for their handling of government accounts.

Timeline of Events:

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• 15 January: AU Small Finance Bank closes a government account and transfers ₹25 crore to another bank.
• 16 February: Haryana government department seeks account opening and transaction details.
• 18 February: IDFC First Bank observes discrepancies in government-linked accounts.
• 20 February: IDFC First Bank calls a meeting of the Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds (SCBMF).
• 21 February: Audit Committee and Board of Directors meet to discuss the matter.
• 22 February: IDFC First Bank discusses the issue with employees.
• 23 February: RBI Governor Sanjay Malhotra assures that the regulator is "watching the development."

Next Steps:

• KPMG appointed to conduct an independent forensic audit into the matter.
• Review expected to take 4-5 weeks.
• IDFC First Bank to extend full cooperation to investigating agencies.
• RBI to continue monitoring the situation.

Regulatory Action:

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• RBI informed of the matter.
• Police complaint filed.
• Further complaints to be filed with law enforcement agencies.
• Relevant authorities to be reported to.