IDFC First Bank Chandigarh Branch Fraud: How Rs 590 Crore Went Missing From Haryana Government Accounts
A routine account closure request exposed a Rs 590 crore black hole inside IDFC First Bank’s Chandigarh branch — with Haryana’s government money at the centre. Four employees suspended. Forensic audit ordered. Police complaint filed. But the biggest question remains unanswered: how long was this hidden?
It started as a routine request — the Haryana government wanted to close a few accounts and transfer funds to another bank. Nobody expected it to unravel one of the most significant banking frauds to emerge from Punjab’s union territory this decade. Today, IDFC First Bank’s Chandigarh branch is at the centre of a Rs 590 crore storm that has shaken depositors, rattled investors, and raised urgent questions about how a fraud of this scale could remain hidden inside a branch serving government accounts.
If you bank with IDFC First Bank in Chandigarh, or are planning to, this guide covers everything — from branch locations and IFSC codes to the fraud that broke today and what it means for you.
IDFC First Bank in Chandigarh: Branch Network at a Glance
IDFC First Bank operates multiple branches across the union territory of Chandigarh, catering to both retail and business banking customers. Here is a current snapshot of the active branches:
Chandigarh – Sector 9D Branch (Primary Branch) This is now the main operational branch after the Sector 8C branch was permanently closed on March 31, 2025. Customers whose accounts were previously maintained at the Sector 8C location have been migrated here.
- Address: Ground Floor, SCO-9, 10 & 11, Madhya Marg, Sector 9D, Chandigarh – 160017
- IFSC Code: IDFB0021218
- MICR Code: 160751012
- Branch Manager: Jaswinder Singh
Chandigarh – Sector 22B Branch
- Address: Ground Floor, SCO 1110-1111, Sector 22-B, Chandigarh – 160022
- IFSC Code: IDFB0021214
- MICR Code: 160751007
- Branch Timings: 10:00 AM to 4:00 PM (Monday to Saturday, closed on 2nd and 4th Saturdays)
- Customer Care: 1800 10 888 (Toll Free)
The older Sector 8C branch (IFSC: IDFB0021211, located at SCO No. 169-170, Ground Floor, Madhya Marg) ceased operations in early 2025. Customers are advised to update their records to reflect the new Sector 9D IFSC code for future transactions.
Breaking Today: The Rs 590 Crore Fraud That Has Everyone Talking
On February 22, 2026, IDFC First Bank filed a disclosure with stock exchanges confirming that employees at its Chandigarh branch had been involved in fraudulent activities amounting to a staggering Rs 590 crore. The funds were drawn from accounts linked to the Haryana government.
How Did It Begin?
The irregularities were first noticed on February 18, 2026, when certain entities associated with the Haryana government approached the Chandigarh branch to close their accounts and shift their funds to another financial institution. What appeared to be a routine administrative exercise quickly became something far more serious.
During the reconciliation process, officials noticed a significant mismatch — the balances recorded in the bank's internal systems did not match the figures cited by the Haryana government representatives. The gap was not small, not a rounding error, not a clerical mistake. It was hundreds of crores.
The discovery triggered an immediate internal escalation.
What the Bank Said
In its official stock exchange disclosure, IDFC First Bank confirmed that "some employees at its Chandigarh branch had been involved in fraudulent activities" totaling Rs 590 crore. The bank clarified several important points:
The suspected fraudulent activities were confined to a specific cluster of government-linked accounts operated through the Chandigarh branch. The bank stated clearly that the matter did not extend to other customers of the branch, and that it did not appear to be systemic across the bank's broader national operations.
Four officials are currently under suspension pending investigation. A police complaint has been filed. A forensic audit has been ordered.
What Remains Unknown
The bank has not publicly disclosed the precise mechanism through which the alleged fraud was executed — whether it involved fabricated entries, circular transactions, forged authorisations, or a combination of methods. The time period over which the fraud allegedly occurred has also not been specified. These details are expected to emerge as the forensic audit progresses.
Understanding the Gravity: Rs 590 Crore in Context
To appreciate how significant this alleged fraud is, consider this: Rs 590 crore is approximately $70 million USD at current exchange rates. For a single branch — not a large metro headquarters, but one branch in a union territory — this represents an enormous concentration of alleged misconduct.
The fact that it involved government accounts makes it doubly sensitive. Public money, meant for state administration and welfare programmes, appears to have been at risk. This is not just a corporate banking scandal — it touches the public exchequer of Haryana.
Indian banking regulations under the Reserve Bank of India require banks to immediately report fraud cases exceeding Rs 1 lakh to the RBI. A Rs 590 crore case will attract intense scrutiny from the RBI, the Central Bureau of Investigation (CBI), and potentially the Enforcement Directorate (ED) depending on how investigations develop.
What This Means for IDFC First Bank Customers in Chandigarh
If you are a regular retail customer at any IDFC First Bank branch in Chandigarh — your savings account, fixed deposits, or loans — the bank has explicitly stated that this fraud was contained within a specific set of government-linked accounts. Retail customers are not directly impacted by this particular incident.
However, as a prudent banking customer, here is what you should do right now:
Check your account statements. Log in to your IDFC First Bank mobile app or internet banking and review your recent transactions. If anything looks unfamiliar, contact the bank immediately at the toll-free number 1800 10 888.
Update your IFSC code. If you were banking with the now-closed Sector 8C branch, ensure your records, salary mandates, EMI instructions, and any linked billers reflect the new Sector 9D IFSC code: IDFB0021218. Using the old IFSC may cause transaction failures.
Know your branch manager. The Sector 9D branch is managed by Jaswinder Singh, reachable through the branch. Direct communication with your branch manager is always a good idea during periods of institutional uncertainty.
Stay informed. Follow official communications from IDFC First Bank via their website (idfcfirstbank.com) and stock exchange filings on NSE and BSE. The bank's stock saw investor reaction today, and further developments from the forensic audit will be disclosed publicly.
A Brief History of IDFC First Bank: From Infrastructure Finance to Retail Banking
IDFC First Bank was formed in December 2018 through the merger of IDFC Bank and Capital First. The name brings together two distinct legacies — IDFC (Infrastructure Development Finance Company), which was a government-backed infrastructure lender, and Capital First, a retail-focused non-banking financial company led by V. Vaidyanathan, who became the MD & CEO of the combined entity.
Over the past several years, IDFC First Bank has aggressively transformed itself into a full-service retail bank, expanding its branch network, launching zero-fee banking accounts, and building a strong credit card business known for its customer-friendly terms. It is listed on both the NSE and BSE and is regulated by the Reserve Bank of India.
The bank has positioned itself as a technology-forward institution, with a highly rated mobile banking app and a focus on transparent, low-cost banking. Until today's disclosure, it had largely avoided the kind of headline fraud that has periodically afflicted India's public sector banks.
Services Offered at IDFC First Bank Chandigarh Branches
For those visiting the Sector 9D or Sector 22B branches in Chandigarh, the bank offers the full suite of retail and business banking services:
Savings and Current Accounts: IDFC First Bank is known for offering higher-than-average interest rates on savings accounts, sometimes up to 7% per annum on certain balance slabs — significantly above what most public sector banks offer.
Fixed Deposits: Competitive FD rates, with special rates for senior citizens. The bank offers both cumulative and non-cumulative FD options.
Home Loans and Personal Loans: The branches facilitate loan applications, document collection, and post-disbursement servicing. The bank's digital loan process is often faster than traditional banks.
Credit Cards: IDFC First Bank credit cards have earned a strong reputation among Indian consumers for lifetime-free cards with reward points, cashback, and no forex markup fees.
NEFT, RTGS, and IMPS: All fund transfer services are available. For NEFT and RTGS transactions to the Sector 9D branch, use IFSC code IDFB0021218.
Business Banking: Current accounts, trade finance, and cash management services for businesses operating in and around Chandigarh's commercial districts.
What Happens Next: The Fraud Investigation Timeline
Based on how similar banking fraud cases have unfolded in India, here is what we can expect:
The police complaint filed by IDFC First Bank will likely be taken up by the Economic Offences Wing of the Chandigarh Police or the Punjab Police, given Haryana government's involvement. The CBI may be called in if the scale and complexity warrants central investigation.
The forensic audit, to be conducted by an independent accounting firm, will trace the origin of the fraudulent transactions, identify the timeline, and map the beneficiaries. Forensic audits of this nature typically take 60 to 90 days, after which a detailed report is submitted to the bank's board and shared with regulators.
The RBI will likely conduct its own supervisory review, examining whether the bank's internal controls were adequate and whether there were missed early warning signals. Regulatory action, including financial penalties, cannot be ruled out.
The four suspended employees will face disciplinary proceedings in parallel with criminal investigations. If collusion with external parties is established, additional arrests are possible.
A Note on Banking Safety: What Indian Depositors Must Remember
The Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance coverage of up to Rs 5 lakh per depositor per bank. This means that even in a worst-case scenario where a bank fails, retail depositors with balances up to Rs 5 lakh are protected.
The IDFC First Bank Chandigarh fraud, serious as it is, involves government accounts — not retail depositors. The bank has explicitly confirmed its operations continue normally. There is no basis for retail depositors to panic. However, this incident is a powerful reminder to never keep all your financial assets in a single institution, and to periodically verify your account statements.
Trust, Transparency, and What Comes Next
The Rs 590 crore fraud at IDFC First Bank's Chandigarh branch is a sobering event. It arrives at a time when India's banking sector has been on a multi-year journey of cleaning up bad loans, improving governance, and building public confidence. A fraud of this scale — particularly one involving government money and internal employees — tests that confidence.
What matters now is transparency. The bank deserves credit for promptly disclosing the fraud to stock exchanges and taking immediate action — suspensions, police complaints, forensic audit. These are the right steps. The investigation must be allowed to proceed without interference, and its findings must be made public.
For ordinary banking customers in Chandigarh, the message is simple: stay informed, stay vigilant, and use the tools at your disposal — mobile banking apps, statement alerts, and direct communication with branch managers — to stay on top of your money.
India's banking system is resilient. But resilience is built, not assumed. It is built one disclosure, one audit, and one accountability moment at a time.
Key Details at a Glance:
| Branch | Address | IFSC Code | Status |
| Sector 9D | Ground Floor, SCO 9,10,11, Madhya Marg, Sector 9D, Chandigarh 160017 | IDFB0021218 | Active |
| Sector 22B | Ground Floor, SCO 1110-1111, Sector 22B, Chandigarh 160022 | IDFB0021214 | Active |
| Sector 8C | SCO 169-170, Madhya Marg, Sector 8C, Chandigarh 160008 | IDFB0021211 | Closed (March 2025) |
Customer Care: 1800 10 888 (Toll Free) Email: [email protected] Website: www.idfcfirstbank.com
Disclaimer: This article is based on publicly available information, stock exchange disclosures, and news reports as of February 22, 2026. Readers are advised to verify branch details directly with IDFC First Bank before making financial decisions. This is not financial advice.
