RBI watching development around IDFC First Bank fraud, no systemic issue: Guv Malhotra

The RBI is watching the development around the Rs 590 crore fraud at IDFC First Bank and there is no systemic issue, Governor Sanjay Malhotra said on Monday. IDFC First Bank had on Sunday disclosed a Rs 590-crore fraud committed by certain employees and others at a particular branch in Chandigarh in a specific set of Haryana state government accounts. "We are watching the development, there is no systemic issue," Malhotra told reporters at a press briefing after the customary post budget address by Finance Minister Nirmala Sitharaman to the Central Board of Directors of the Reserve Bank of India (RBI). IDFC First Bank had said that the fraud is "confined to a specific group of government-linked accounts within Haryana government" operated through the said branch in Chandigarh" and stressed that it does not extend to other customers of the Chandigarh branch.