₹590 Cr IDFC Fraud Brings Govt Banking Partnerships into Focus

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Governance Exposed:

₹590 crore fraud at IDFC First Bank's Chandigarh branch reveals systemic weaknesses in handling government accounts, triggering industry-wide scrutiny on internal controls.

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How Fraud Unfolded:

Ex-branch manager Ribhav Rishi and relationship manager cleared forged cheques bypassing maker-checker controls. ₹300 crore routed through Swastik Desh Projects private firm.

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Swift Recovery Action:

Bank repaid ₹583 crore to Haryana govt within 24 hours despite ongoing investigation. Four arrests made; KPMG conducting forensic audit.

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De-empanelment Fallout:

Haryana banned IDFC First and AU Small Finance from govt business. ₹200 crore deposits already exited. Government funds account for 8-10% total deposits—risk of contagion.

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Broader Implications:

Stock crashed 20%, recovered partially. RBI says "no systemic risk" but incident raises questions: Where were audit committees? Why did physical cheque controls fail in digital banking era?

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With Our Subscription Plans

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₹590 Cr IDFC Fraud Brings Govt Banking Partnerships into Focus

Governance Exposed: ₹590 crore fraud at IDFC First Bank's Chandigarh branch reveals systemic weaknesses in handling government accounts, triggering industry-wide scrutiny on internal controls.

How Fraud Unfolded: Ex-branch manager Ribhav Rishi and relationship manager cleared forged cheques bypassing maker-checker controls. ₹300 crore routed through Swastik Desh Projects private firm.

Swift Recovery Action: Bank repaid ₹583 crore to Haryana govt within 24 hours despite ongoing investigation. Four arrests made; KPMG conducting forensic audit.

De-empanelment Fallout: Haryana banned IDFC First and AU Small Finance from govt business. ₹200 crore deposits already exited. Government funds account for 8-10% total deposits—risk of contagion.

Broader Implications: Stock crashed 20%, recovered partially. RBI says "no systemic risk" but incident raises questions: Where were audit committees? Why did physical cheque controls fail in digital banking era?