23/02/2026
IDFC First Bank reported a fraudulent or series of fraud transaction/s where the total amount, as of now is around ₹490cr, or might be higher also.
If we counter it with the annual profits percentage, then 1/3d amount would have been wiped off.
Many questions, like
1) Who was responsible for the overall fraud.
2) Was any outside party, other than the normal bank employee s were responsible for the activity.
3) What will happen to the money lost.
4) Will the genuine account holders will be able to get the lost money back.
5) Any lapses from regular audits & how the system was bypassed in such huge amount not got noticed by any one.
Before that, let's be realistic with the banks ability.
IDFC First Bank is a very stable bank & very nicely managed by its MD Mr Vaidyanathan. The bank's equity partner's are the biggest pvt equity players of the world.
RBI has stepped in to reassure that no-one will be sparred and the bank has been adviced to restore the system.
My observation
Till now, No such problems have been reported from the mutual funds domain.The mutual funds industry, corporate + retail, put together is more than ₹49 lak cr.
Any reasoning or thoughts
For me, the most important point can be that
In mutual funds industry, at the behest of SEBI, practiced and followed through CAMS + KFINTECH all the Mutual Funds Company send quarterly account balance statement to the investors, the process is called as CAS. Or when sent through email to the respective investor, it is called as E-CAS.
In this case, whether the investor initiates or has not initiated any transaction for last 6,9months, still he/she knows the account balance.
The AMC(mutual fund company), through the system has automated the process rolled again by CAMS/KFINTECH(previously KARVY).
There is NO such practice from any banks or RBI.
Infact, now a days, we have to print out our savings passbook by visiting the banks branch. How cumbersome the process is, only the account holder knows, why
1) Line management problems
2) Out of order - printing machine
3) Double printing issues
4) Lack of infrastructure support
5) Machines are mostly inside the branches, so during public/national holidays the system is shut, no access to accounts.
Banks, mostly, private and very few PSB(Public Sector Banks), exception of SBI, etc not have sensitised the problem.
My suggestion
Can RBI, AUTOMATE , the process like the mutual funds system to ALL the account holders, on quarterly basis, the process called as KYB(Know Your Balance).
If this happens, atleast, we can be able to cut down 👎 frauds by some percentage basis , as Any Change in the Communication( 📲+ 📨) is immediately brought to the notice of the account holder.
What do you think 🤔