Punjab National Bank (PNB) has suspended 12 employees and approached the Central Bureau of Investigation (CBI) after customers at its Greater Noida branch reported unauthorised transactions involving their savings accounts and fixed deposits.
The alleged fraud has raised questions about employee access to banking systems, internal controls and the security of customer deposits.
According to a report by Mint, the bank suspects that a female employee at the branch worked with outsiders to access the branch manager's password and transfer money from customers' accounts without their knowledge.
PNB's preliminary assessment puts the amount transferred at less than ₹10 crore.
However, complaints filed by 21 account holders have identified alleged losses exceeding ₹11.24 crore, while some customers have estimated the total amount involved at nearly ₹35 crore. The final amount is yet to be established.
How did employees allegedly misuse banking access?
The alleged irregularities were reported at PNB's Aichhar branch near Sector Pi-1 in Greater Noida, Uttar Pradesh.
Several customers claimed that money had been moved from their savings accounts and fixed deposits without their consent. Some also alleged that their fixed deposits were prematurely closed and the proceeds transferred to other accounts.
Account holders have raised concerns about not receiving SMS alerts for the disputed transactions or signing documents authorising the transfers.
PNB launches internal probe, approaches CBI
The bank has also initiated an internal investigation and approached the CBI for further investigation.
An FIR has been registered against unidentified bank employees under Section 316(5) of the Bharatiya Nyaya Sanhita (BNS), which deals with criminal breach of trust by a public servant or banker.
The investigation is examining the disputed transactions, the alleged misuse of employee credentials and the possible involvement of external individuals.
Reports have also indicated that the bank's Delhi head office has put the transferred funds on hold.
Bank assures customers of genuine claims
PNB has said it is examining customer complaints on priority and cooperating with the authorities. The bank has also confirmed that it has settled three claims amounting to ₹43 lakh.
"The Bank assures its customers that all genuine claims will be honoured," PNB said in a statement reported by PTI.
The bank has further stated that it will take strict action against anyone found responsible and introduce measures to prevent similar incidents.
Employee accountability and internal controls in focus
The alleged fraud has brought renewed attention to employee accountability and the safeguards banks need to maintain when granting staff access to sensitive financial systems.
The suspected misuse of the branch manager's credentials raises questions about password security, transaction authorisation and the monitoring of unusual account activity.
The allegations also highlight the importance of independent verification mechanisms and timely customer alerts, particularly when large sums are transferred or fixed deposits are closed prematurely.
For PNB, the immediate challenge is to establish how the alleged transactions took place, identify those responsible and address the claims raised by affected account holders.
The final amount involved remains unconfirmed, while the investigation and verification of customer complaints are ongoing.
