Deposits | Business Upturn

IDFC First Bank pays Rs 645 crore to clients in Chandigarh branch incident, Rs 55 crore above initial estimate

Business Desk — Tue, 10 Mar 2026 03:40:12 +0000

IDFC First Bank has paid a net principal amount of ₹645 crore to clients affected by an incident at its Chandigarh branch, ₹55 crore more than the initial estimate of ₹590 crore disclosed earlier. The bank confirmed that all claims pertain to the same incident and are linked to the same branch, with no other pending claims as of 10 March 2026.

The bank has completed reconciliation of all relevant accounts at the Chandigarh branch and reported no further discrepancies. No additional claims have been received from any other entity across the country since 25 February 2026. The bank stated it will continue pursuing actions against the perpetrators to recover the dues.

Despite the incident, IDFC First Bank’s total deposit balance remained stable at ₹2,92,381 crore as of 28 February 2026, compared to ₹2,91,133 crore as of 31 December 2025. The bank characterised the matter as an isolated incident and thanked customers for their understanding.

The average Liquidity Coverage Ratio (LCR) for the ongoing quarter until 28 February 2026 stood at a comfortable 114 per cent. The bank anticipates growth in deposits and loans going forward, broadly in line with past trends.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Co-operative societies can no longer use ‘bank’ in their title: RBI

Ayisha Farah — Mon, 22 Nov 2021 12:49:51 +0000

On Monday, the RBI warned the public against cooperative organisations using ‘bank’ in their titles and receiving deposits from people who are not their members.

After the reformation in the Banking Regulation Act, 1949, effective September 29, 2020, co-operative organisations are disabled from using the words “bank”, “banker”, or “banking” as part of their names, except as authorised under the stipulations or by the Reserve Bank of India (RBI).

RBI stated it has been noticing that few co-operative societies are utilising the word ‘bank’ in their names in infringement of the Banking Regulation Act. It has also come to the warning of RBI that certain co-operative societies accept deposits from non-members/ nominal members/ associate members, which is equivalent to leading banking business in infringement of the stipulations.

“Members of the public are hereby informed that such societies have neither been issued any licence under BR Act, 1949 nor are they authorised by the RBI for doing banking business,” RBI saidd. Further, the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance cover is unavailable for deposits placed within these societies.

Public members are encouraged to be cautious and carry enough attention to such cooperative societies if they pretend to be a bank. The central bank said they should look for banking licenses published by RBI before dealing with them.

RBI shuts down a bank for securing trust of depositors on the banks

Abhinay Talkhedkar — Thu, 29 Jul 2021 13:58:32 +0000

“With the cancellation of license and commencement of liquidation proceedings, the process of paying the depositors of The Madgaum Urban Co-operative Bank Limited, Margao, Goa as per the DICGC Act, 1961 will be set in motion,” RBI said.

The bank will not be able to do ‘banking’ in the future. Accepting a certain amount of deposits or repaying them must not happen. Why has RBI invalidated the license of the bank? The reason behind it disclosed by RBI is inadequate capital and profiting possibilities. The current financial situation of the bank was weak and depositors can get disappointed in the future if this bank fails to provide them with their money. RBI has sent a circular to the office of the Registrar of Cooperative Societies, Goa.

An order has been issued for spiraling up the bank and appointing an official liquidator. 99% of depositors will attain full amounts of their assurances from Deposit Insurance & Credit Guarantee Corporation (DICGC). Various incidents happened in the past but this is the latest instance of the Central bank shutting down the weakly run collective bank. Institutional disappointments and instigated penal actions have been illustrated as the reason for closing off.

As per the DICGC Act, 1961, the procedure of paying deposits to depositors will begin shortly. RBI also said, “On liquidation, every depositor will be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5,00,000 from the DICGC, subject to the provisions of the DICGC Act, 1961.”

According to the Banking regulation act, 1949. The bank has failed to fulfill the requisites of section 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d), and 22(3)(e), etc. It will be prejudiced to continue the working of this bank as far as the security of depositors is concerned.

RBI bans DHFL from taking deposits under Primal management

Aryan Jakhar — Tue, 15 Jun 2021 16:39:50 +0000

The Reserve Bank has revoked the deposit-taking status of Dewan Housing Finance (DHFL), the first financial services firm to go for bankruptcy proceedings, and has reclassified it as a non-deposit taking housing finance company, before approving the Piramal group’s bid to take over it towards the end of the resolution process.

The revelation comes in the June 7 NCLT Mumbai order that has approved the Rs 35,250-crore bid for the once second largest mortgage lender by Piramal Capital & Housing Finance, forcing over 65 per cent haircut on the creditors and just Re 1 to its NCD holders to whom it owes more than Rs 45,000-crore.

On the 14th page of the 86-page NCLT order by HP Chaturvedi and Ravikumar Duraisamy, it says DHFL no longer is a deposit-taking NBFC but a non-deposit taking one.

The changes were made in February 2021, after the RBI gave a non-objection to the January 25, 2021 application by R Subramaniakumar, the DHFL administrator, citing Rule 5 of its FSP (financial services providers) Rules.

“Pursuant to the FSP Rules, the RBI communicated its ‘no objection’ on February 16, 2021, for change in control/ownership/management in DHFL in terms of Rule 5(d)(iii) of the FSP Rules and also in terms of para 3 of NHB circular housing finance companies — approval of acquisition or transfer of control Directions, 2016, subject to (inter alia) the condition that the deposit-taking status of DHFL will be revoked and merged entity of DHFL and Piramal

Capital shall function as a non-deposit taking housing finance company,” says the NCLT order. In the concluding part of the order, the bench reiterates that the resolution is subject to the fact that RBI’s non-objection, which is based on the condition that “the status of the corporate debtor (DHFL) is changed from a deposit-taking housing finance company to a non-deposit-taking housing finance company.

It can be noted that DHFL became the first financial services entity to be referred to the NCLT for bankruptcy, when the RBI on November 20, 2019, superseded the DHFL board and appointed Subramaniakumar as its administrator. The company went down after its promoters allegedly siphoned public funds and defaulted on its debt repayments worth over Rs 95,000 crore to 21 banks and tens of thousands of depositors.

More than 55,000 retail and institutional investors hold Rs 5,375 crore worth of fixed deposits in DHFL. The Rs 3,5250-crore bid by the Piramal group was approved by the committee of creditors on January 15, 2021.

The government had to amend the RBI Act and notify a section of the bankruptcy code to enable the RBI to send DHFL to the NCLT under Section 45-IE(2) of the RBI Act which deals with governance concerns and defaults.

Two days superseding its board the RBI on November 22, under Section 45-IE 5(a) of the RBI Act, constituted a three-member advisory committee under Rajiv Lall, non-executive chairman of erstwhile IDFC First Bank, NS Kannan, managing director of ICICI Prudential Life, and NS Venkatesh, chief executive of the Mutual fund lobby Amfi to advise the administrator in the operations of DHFL during the resolution process.

The NCLT admitted the case on December 3, 2019, and cleared the process on June 7, 2021, as the whole process got delayed by the pandemic driven lockdowns.

However, the DHFL case scored some unusual headlines when the Mumbai NCLT bench headed HP Chaturvedi and Ravikumar Duraisamy on May 26, 2021, had asked the committee of creditors to relook at the ready offer of over Rs 92,000 crore offer made by the Wadhawans, the original promoters of DHFL.

The order was stayed by appellate body NCLAT the very next day and on June 7, the final order approving the Piramal group bid, which is only a third of its dues, was issued.