Mumbai/IBNS, Feb. 23 -- Reserve Bank of India Governor Sanjay Malhotra on Monday dismissed concerns over the Rs.590 crore fraud at IDFC First Bank Limited, stating that the incident poses "no systemic risk" to India's banking system, media reports said.

Malhotra declined to comment on the bank's internal investigation.

In an exchange filing, IDFC First Bank said that a few employees were involved in unauthorised transactions from accounts linked to the Government of Haryana.

The fraud came to light after the Haryana government requested the closure of its account and transfer of funds to another bank. During the reconciliation process, the lender detected discrepancies between the balances recorded in its books and those reported by th...