IDFC First Bank's ₹590cr fraud bigger than its quarterly profit
A massive ₹590 crore forged cheque scam was uncovered at IDFC First Bank's Chandigarh branch, after a Haryana government department tried to close its account on February 18, 2026.
The fraud involved some bank staff teaming up with outsiders to clear fake cheques and move money out of government-linked accounts—an amount even bigger than the bank's recent quarterly profit.
Bank's response, forensic audit, RBI's statement
Haryana's Finance Department de-empanelled IDFC First Bank (and AU Small Finance Bank) for government business in Haryana and instructed government departments to stop routing funds, transfer existing government balances and close their government accounts.
The bank suspended four employees, filed police complaints, and brought in KPMG for a forensic audit.
CEO V Vaidyanathan clarified that only physical cheques and manual instructions were misused—no digital systems were breached.
The bank is relying on insurance for part of the loss and plans to recover the rest legally.
RBI says there's no wider risk to India's banking system from this incident.