Citibank said on Saturday it had begun the process of working towards fair compensation

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for customers affected by an alleged employee fraud at its branch in Gurgaon on the outskirts of the capital.

The bank said the process of compensation will happen over a period of time and that it will continue to support the investigating authorities fully until the matter is resolved.

"As we have stated earlier, Citi identified suspicious transactions at our Gurgaon Branch in early December and immediately reported the matter to law enforcement and regulatory authorities," the company said in a statement.

A source familiar with the mater said the settlement was expected to total around 3 billion rupees ($66.1 million). A Citi official declined to confirm the amount.

Last week, the company said it was investigating transactions based on what it said were documents forged by an employee at a branch in India.

The bank did not say how much money was involved in the fraud, but a person familiar with the matter said the transactions may involve between 3 billion and 4 billion rupees ($66 million-$88 million).

The source, who declined to be identified, said the case involved 30 to 40 high net worth individual clients.