The revelation of ₹590 crore scam involving IDFC First Bank in Haryana has created a stir in both politics and investigating agencies. Late last night, the Vigilance Department arrested several accused including the mastermind in this case related to Chandigarh branch. The government claims that the entire amount has been recovered, but questions still remain. How did this scam happen?
In this entire case, on February 24 at around 6 pm, the Vigilance Department took action and arrested four accused including mastermind Ribhav Rishi, Abhay Kumar, Swati Singla and Abhishek Singla. Ribhav Rishi, who was previously a manager in the bank and is currently posted in AU Small Finance Bank, is accused of conspiring to embezzle government funds by creating fake companies. The agencies are now investigating the entire network and money trail.
How the ₹590 crore scam came to light
The whole matter started with a routine process. Around February 2026, the Haryana government issued orders de-empanelling IDFC First Bank and AU Small Finance Bank from government business. Departments were directed to immediately transfer their funds deposited in these banks to other authorized banks. When a department asked the Chandigarh branch to close its account and transfer funds, the real mistake came to light. There was a huge difference between the balance shown in the account and the actual balance. As the investigation intensified, it was revealed that funds from many government accounts were missing. Initial investigation revealed misappropriation of approximately ₹490 crore, which later increased to approximately ₹590 crore.
What was the method of the scam?
According to the investigating agencies, this was not a high-tech cyber fraud, but a very traditional fraud. It is alleged that some bank employees, in collaboration with outsiders, withdrew money from government accounts through fake checks and unauthorized transactions and transferred them to other accounts. Shell companies were used to hide the money trail. According to sources, the mastermind of this conspiracy was Ribhav Rishi, who was earlier a manager at IDFC First Bank and later at AU Small Finance Bank.
Immediate action by banks and government
As soon as this scam came to light, both the bank and the government took immediate action. The bank suspended four employees, lodged a police complaint and informed the Reserve Bank of India. Subsequently, KPMG initiated a forensic audit. Meanwhile, the Haryana government directed all departments to withdraw the money from the bank, ordered immediate closure of the accounts and roped in the Vigilance and Anti-Corruption Bureau to investigate. Chief Minister Nayab Singh Saini said in the Assembly that the government detected the irregularities in time and all the money was safely withdrawn.
Opposition’s attack – demand for CBI investigation
Politics has also become heated on this issue. Opposition leader Bhupendra Singh Hooda has demanded a CBI inquiry into the entire matter. He says that just returning the money is not enough. It should also be known who is responsible for this and where has the money gone. Congress leader BB Batra also raised questions on the government, saying that the government cannot escape accountability and it will have to explain how and where the public money was used.
What did the government say on this matter
The government says that this is the first time that such a huge amount has been recovered so quickly. According to Chief Minister’s Media Advisor Rajiv Jaitley, the government itself informed the bank about the irregularities, and after this an FIR was registered and investigation was started.
Impact on the market – shock to investors
This scam also affected the stock market. Shares of IDFC First Bank fell by almost 20 percent, causing loss to investors. It is estimated that around ₹14,000 crore was lost in market value within a few hours.
RBI statement
On the whole matter, Sanjay Malhotra (RBI Governor) said that this is a local incident and it does not pose any major threat to the banking system. However, RBI is monitoring the situation.
The big question: Who is responsible?
Although the government has claimed that all the money has been recovered, many questions still remain. Was it just collusion between a few employees or was there a larger network? Where did the money go through shell companies? Were government officials also involved in this? The government has indicated that the role of some government employees is also being investigated, but their names have not been revealed yet.
What will happen next in this whole case?
Investigation is still going on. Forensic audit, bank records, transaction trails and interrogation of the arrested accused are being conducted to trace the entire network. The government has clearly said that the culprits will not be spared, whether they are associated with the bank or the government machinery.
