Finshots Daily A ₹590 crore fraud at IDFC First Bank!
Feb 24, 2026
A ₹590 crore cheque-based fraud at a private bank and how forged cheques moved funds into outside accounts. The role of maker-checker controls and why cheques still matter for institutional transfers. Allegations of collusion among branch staff and missed reconciliations. Potential fallout for deposits, liquidity pressures, and broader risks for smaller banks.
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Forgotten Cheques Enabled A Big Fraud
- Cheques still matter for large institutional payments despite retail digitisation.
- Haryana government relied on cheques for departmental transfers, which allowed forged physical instruments to be used at the branch level.
Haryana's Account Checks Exposed The Theft
- Haryana officials noticed balances didn't match expected amounts when they asked for detailed statements.
- Departments closing accounts discovered funds missing and preliminary findings pointed to forged checks and transfers to outside accounts.
Maker Checker Should Prevent Large Unauthorized Transfers
- Large institutional transfers use a maker-checker dual control system to require multiple approvals.
- The maker-checker (four eyes) system is supposed to prevent unilateral large transfers and detect fraud or errors.