RBI governor Sanjay Malhotra on Wednesday said that the Indian banking system remains “resilient, safe and strong” amid concerns over governance and rising fraud incidents reported in 2026.
The biggest incident was the surprise resignation of HDFC Bank’s part-time chairman, Atanu Chakraborty, citing that certain practices at the bank were not aligned with his personal values and ethics, without elaborating further.
Separately, instances of fraud were reported at IDFC First Bank and Kotak Mahindra Bank in February and March, involving ₹590 crore and ₹160 crore, respectively, raising concerns over ethical standards and internal controls at the lenders.
“I want to assure everyone that the banking system is resilient, safe and strong. The number of regulations, whether relating to conduct, governance, prudence, or liquidity, along with our supervisory framework, keeps the banking system healthy and robust. Some of these incidents are more in the nature of crimes. While we have to remain vigilant, the law enforcement mechanisms of our country will take care of this,” said Malhotra.
Specifically regarding HDFC Bank, the RBI governor reiterated that the central bank has not found any material concerns regarding governance or conduct in its supervision, based on its review of the bank’s records.
“Whether there is a need for any change in directions and guidelines, we do not think so as of now,” Malhotra said.