PNB settles ₹43 lakh in claims amid ₹12 crore fraud allegations at Greater Noida branch

What happened at PNB’s Greater Noida branch

Punjab National Bank (PNB) has settled ₹43 lakh in three claims following allegations of unauthorized transactions and fraudulent transfers at its Aichhar branch in Greater Noida. The bank is investigating complaints involving over ₹12 crore in suspected fraud, with 25 customers reporting unauthorized transfers from savings accounts and premature closures of fixed deposits (FDs).

The allegations surfaced after customers, including farmers who had deposited compensation for land acquired for the Noida International Airport project, discovered discrepancies when attempting to access their funds. Protests outside the branch have since erupted, with account holders demanding the return of their money and accountability.

PNB’s response and investigation

PNB has suspended all employees at the Aichhar branch, including the branch manager, and stated it is examining the matter on priority. The bank’s head office in Delhi has put the transferred amount on hold and assured customers it will be returned. Ram Vinod Kumar, the lead bank manager for Gautam Budh Nagar district, confirmed this commitment.

The bank reiterated its zero-tolerance policy toward fraud and financial misconduct, adding that stern action would be taken against those found responsible. PNB also pledged to strengthen internal controls and monitoring mechanisms to prevent recurrence. However, the bank has not specified the total number of claims received or the overall amount under verification.

Police have registered a case under Section 316(5) of the Bharatiya Nyaya Sanhita for criminal breach of trust. The investigation aims to establish the circumstances surrounding the disputed transactions and determine responsibility.

Customer allegations and financial impact

Complainants allege that funds were transferred without their consent, with some customers reporting significant losses. Shrichand, a resident of Viroondi Chakrasenpur, claimed around ₹1.16 crore was misappropriated from an FD. Another customer, Vijendra Singh, reported his account balance dropping from ₹87-88 lakh to approximately ₹1 lakh. Haneef Khan alleged that ₹39 lakh was missing from his savings account.

The number of complainants has risen to 25, with many stating they only discovered the discrepancies when they visited the branch to access their funds.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

This incident underscores the vulnerability of financial institutions to internal fraud and the cascading effects on customer trust. For founders and operators in the fintech and banking sectors, the case highlights the critical need for robust internal audits, real-time transaction monitoring, and transparent communication with customers. The suspension of employees and PNB’s public commitment to reimbursing affected customers may serve as a temporary damage-control measure, but the long-term reputational impact will depend on the bank’s ability to prevent recurrence and hold responsible parties accountable.

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