PNB customers allege Rs 350 million missing from accounts, five employees suspended

Dubai: Customers of Punjab National Bank (PNB) in India’s Greater Noida region have alleged that nearly Rs 35 crore or roughly Rs 350 million has collectively disappeared from their savings and fixed deposit accounts. They claim that they didn’t receive any messages or notifications for authorizing any transactions and  it was only when they checked their account balance, they noticed the missing money.

This has now prompted the Uttar Pradesh police to start an investigation and has also led to the suspension of five bank employees, including the branch manager.

The allegations centre on the bank's Aichhar village branch in Uttar Pradesh, where customers say they discovered sharp falls in their account balances, premature closure of fixed deposits and transfers they claim they never approved. Several customers also said they received no transaction alerts or messages informing them that their money had been moved.

According to a NDTV report, at least 16 account holders have filed complaints, with the alleged losses ranging from Rs 10 lakh to Rs 1.2 crore in individual cases. The total number of affected customers still remains unclear.

The accounts of several customers reportedly held compensation paid for land acquired for infrastructure projects, including the Jewar airport project. According to one report, a person identified as Haneef Khan alleges that his savings account, which held Rs 39 lakh, no longer reflected the money. “I neither received any message nor signed any document authorising the transfer of funds,” he told PTI. Another account holder, Vijendra Singh, said his balance had fallen by Rs 87 lakh, from Rs 88 lakh to just Rs 1 lakh. 

The victims range from farmers to tea vendors and even land owners. Customers alleged some fixed deposits had been closed before maturity, with the proceeds transferred to other accounts. Other complaints concerned suspected unauthorized withdrawals and discrepancies in passbook entries 

While investigation is still underway, the precise method through which the money was allegedly moved, and whether all the cases are connected, has not yet been established.

Police register FIR, bank launches internal inquiry

According to reports, police have registered a first information report (FIR) on Wednesday under Section 316(5) of the Bharatiya Nyaya Sanhita, which deals with criminal breach of trust. The FIR brings together 16 complaints, with investigators examining the allegations against the branch staff.

Additional Deputy Commissioner of Police (Greater Noida) Santosh Kumar told reporters that an assistant commissioner of police had been directed to lead the inquiry. He said further investigation would follow based on its findings. Police have also said the total amount involved and the number of affected accounts can be established only after the investigation.

The bank has suspended five employees, including the branch manager, and initiated an internal investigation. According to The Economic Times, the bank has assured authorities that it will address customers' complaints. A separate inquiry by the bank's anti-corruption team has also been reported.

Not the first scam

The latest allegations come years after PNB was at the centre of one of India’s biggest banking frauds, involving diamond merchants Nirav Modi and his uncle Mehul Choksi. In 2018, the state-owned lender disclosed alleged fraudulent transactions worth nearly Rs 13,850 crore at its Brady House branch in Mumbai. 

The case triggered scrutiny of banking safeguards and led to changes in trade-finance practices. In April 2025, Mehul Choksi was arrested in Belgium following an Indian extradition request, while Nirav Modi remained in custody in the UK amid extradition proceedings.