IDFC First Bank Rs 590-crore fraud: 'Even govt money is not safe in banks,' say netizens

Four bank officials have been suspended pending investigation. IDFC First Bank said it would pursue strict disciplinary, civil and criminal action against employees and external individuals found responsible.

IDFC First Bank’s disclosure of a Rs 590‑crore fraud linked to Haryana government‑linked accounts at its Chandigarh branch has triggered a wave of criticism and distrust on social media, with users asking how even the government's money is not safe in banks. The lender reported unauthorised and fraudulent activities by certain employees, suspending four officials and initiating a forensic audit.

According to the bank’s regulatory filing, discrepancies were first spotted when a Haryana government department requested closure of its account and transfer of funds, revealing mismatches between stated and actual balances. Subsequent reviews with other departments uncovered more differences. The bank said the matter is confined to a specific set of government-linked accounts and does not extend to other customers.

'Even government money is not safe'

On X, users expressed deep concern about the integrity of private banking institutions. One user wrote, “Even government money is not safe in banks,” citing repeated high NPA trends and calling the fraud a confirmation of long‑held doubts about IDFC First’s stability.

Another user compared the incident with a recent Rs 60‑lakh gold loss at a Punjab National Bank locker, suggesting a pattern of failures across financial institutions. “Banks protect money... but who protects your trust?” another commenter asked, reflecting a growing sentiment of distrust.

Long-term investors express relief

Some long‑term retail investors said the incident validated their earlier caution. One user noted that after analysing the bank two years ago, rising NPAs made them uncomfortable, and the discovery of the Rs 590‑crore fraud has now “permanently” dropped the idea of investing.

Two years ago, I was analysing IDFC First Bank with an objective to invest for a decade. One year ago, I got bit uncomfortable as the Bank was reporting higher NPAs again and again. Now a fraud of Rs. 590 crores is detected. Thanks God, I didn’t invest. The idea is now… pic.twitter.com/1OQFOZdf9X

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— Chander Bhatia (@ChanderBhatia01) February 22, 2026

Anxiety over systemic oversight

Many users questioned how such large discrepancies could occur undetected within government‑linked accounts. The revelation that discrepancies spanned multiple departments between February 18 and the time of disclosure has heightened calls for stronger oversight and early‑warning mechanisms.

Haryana government stops dealings with IDFC First Bank

Meanwhile, the Haryana government has de‑empanelled IDFC First Bank and AU Small Finance Bank from handling state business, ordering all departments and organisations to close accounts and shift funds immediately. The state flagged failures in adhering to deposit instructions and mandated reconciliations by March 31.