New Delhi, 23 February (HS): Reserve Bank of India (RBI) Governor Sanjay Malhotra on Monday said the central bank is monitoring developments related to the alleged Rs 590 crore fraud at IDFC First Bank, adding that there is no systemic issue.

Addressing a press conference in New Delhi, Malhotra said, in response to a query, that as a matter of policy the RBI does not comment on individual banks or regulated entities. He, however, stated that the regulator is keeping a close watch on the developments.

Earlier, IDFC First Bank Managing Director and Chief Executive Officer V Vaidyanathan had said that the alleged fraud of Rs 590 crore linked to Haryana government accounts was carried out through collusion between certain bank employees and external parties. He stated that the matter was confined to a specific unit and a particular customer group and did not involve any systemic reporting error.

Following the allegations, the Haryana government has reportedly de-empanelled IDFC First Bank and AU Small Finance Bank from handling government business. The disclosure regarding the alleged fraud was made by IDFC First Bank on Sunday.

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Hindusthan Samachar / Jun Sarkar