IDFC First Bank Account: After the ₹590 crore scam at IDFC First Bank, account holders are wondering what will happen to their money? Is their money safe? Everyone from the bank's CEO to the RBI Governor is appealing to people about this.

IDFC First Bank Fraud:  A group of employees at the Chandigarh branch of IDFC First Bank colluded to defraud ₹590 crore. The bank accounts of Haryana government departments were defrauded of ₹590 crore. Following this news, IDFC First Bank shares plummeted by more than 20%. Investors who invested in the bank's stock suffered losses of more than ₹14,438 crore. Along with ordinary investors, the government also lost crores of rupees. It's worth noting that 2.8 million retail investors own 15% of the bank, while the Government of India holds approximately 7.75%. 25 insurance companies hold a 10.76% stake, of which LIC holds 2.35%. Additionally, 34 mutual fund companies hold 10.93%, including foreign investors and retail investors. Following the scam's revelations, IDFC First Bank shares fell, causing significant losses to investors, including those from the Government of India to major insurance companies like LIC.  

IDFC First Bank scam is a major blow to the government and LIC.

The Indian government holds a significant stake in IDFC First Bank. The government owns 666,570,000 shares. The fall in IDFC First Bank's stock caused a loss of ₹1,113.83 crore to the Indian President's portfolio. Similarly, LIC, which holds 202,369,591 shares of the bank, suffered a loss of ₹340 crore.  The storm in America wiped out ₹3 trillion in Indian money, causing a 'catastrophe' in the market. Who is after IT stocks?

RBI's eye on IDFC First Bank

The Reserve Bank of India took immediate action upon the disclosure of the bank fraud. RBI Governor Sanjay Malhotra stated that there is no systemic risk to the banking system. He added that the RBI is continuously monitoring the situation. The Reserve Bank has assured that the banking system is safe and secure. The Reserve Bank has reassured account holders and bank investors.

What should IDFC First Bank account holders do?

Following the disclosure of the fraud, the bank's 35 million customers are worried about what will happen to their deposits. If you also have a bank account with this bank, please note that this scam will not affect your savings. Your money is completely safe in the bank. Both the Reserve Bank and the bank have clarified that the public's money is completely safe in the bank. This scam will not affect your savings, fixed deposits, credit cards, or loans. This scam is the result of flaws in the bank's internal controls. It has nothing to do with the money of ordinary account holders. This means that if you have a bank account with IDFC First Bank, trust the bank without any rumors. Your money is completely safe.  

How did the Rs 590 crore scam happen in the bank?

The bank holds accounts for 18 departments of the Haryana government. The Haryana government applied to close some of these accounts. Upon reviewing the records, the bank's balances and the government's recorded balances did not match. This led to the discovery of the scam. It was discovered that some bank employees had committed fraud of ₹590 crore through unauthorized transactions and deposit manipulations. Most importantly, IDFC First Bank itself disclosed this scam. According to the bank, some employees, in connivance with outsiders, orchestrated this entire scam, embezzling ₹590 crore from the Haryana government's bank accounts. The bank stated that this fraud occurred in Haryana government accounts, not involving the bank accounts of ordinary citizens.  

PC:Zeenews