SBI Manager Among Four Arrested in ₹2.65 Crore Fraud in Telangana
Authorities have successfully recovered approximately ₹2.42 crore out of the defrauded amount
In a major banking fraud case, police in Telangana’s Nalgonda district have arrested four individuals, including a bank manager, for allegedly siphoning off ₹2.65 crore from dormant accounts of the State Bank of India (SBI).
Fraud Uncovered Through KYC Manipulation
According to police, the accused exploited loopholes in the bank’s online Know Your Customer (KYC) update system to target dormant accounts that still held significant balances.
The fraud came to light after a vigilant account holder in Hyderabad received an alert regarding an unauthorized KYC update and promptly informed the bank, triggering an internal probe.
Modus Operandi
Investigations revealed a well-planned conspiracy involving insiders and external accomplices:
- The prime accused, a contract housekeeping staff member at SBI’s Agricultural Commercial Branch (ACB) in Devarakonda, used internal access to identify nearly 10 dormant accounts through the bank’s Management Information System (MIS).
- With the help of bank officials, mobile numbers linked to these accounts were changed.
- Forged documents, including Aadhaar and PAN details, were created to bypass verification checks.
- The accused then activated digital banking services, including SBI’s YONO platform, to transfer funds into multiple “mule accounts” operated by associates.
Arrested Individuals
The Nalgonda police arrested the following accused on April 21:
- L. Chakrapani (25): Contract housekeeping staff at SBI Devarakonda and prime accused
- P. Venkata Ramanjaneyulu (37): SBI Manager, Suryapet main branch
- K. Ramlal (35): SBI recovery agent from Miryalguda
- Marepalli Shiva (31): Photographer from Devarakonda who allegedly assisted in documentation
Swift Police Action & Recovery
Acting on a complaint filed on April 13, a police team conducted a swift investigation, leading to the arrest of all four accused.
Authorities have successfully recovered approximately ₹2.42 crore out of the defrauded amount.
Legal Proceedings
The accused have been booked under relevant provisions of the Bharatiya Nyaya Sanhita (BNS) and the Information Technology Act.
Banking Security Concerns Raised
The incident has once again highlighted vulnerabilities in digital KYC processes and the risks associated with dormant bank accounts. Banking experts stress the need for:
- Stronger internal controls
- Multi-layer authentication for KYC updates
- Regular monitoring of inactive accounts
