“I neither received any message nor signed any document.” Customers of a Punjab National Bank branch in Greater Noida allege that nearly Rs 35 crore vanished from their savings accounts and fixed deposits without their consent. PNB has suspended employees, including the branch manager, and police have registered a case. Here is what the law offers customers who find money missing from their accounts.
Greater Noida: Customers of a Punjab National Bank (PNB) branch in Sector Pi-1, Greater Noida, have alleged that nearly Rs 35 crore was withdrawn or transferred from their savings accounts and fixed deposits without their authorisation, and that they received no SMS alerts about the transactions. Police have registered a case at the Beta-2 police station, and the bank has suspended several employees, including the branch manager.
The figure of Rs 35 crore is based on account holders’ claims. Neither the bank nor the police has confirmed it, and the number of affected customers has not yet been established.
“Received no message, signed no document”
According to reports, farmer Vijendra Singh, who said he had received land compensation, found the balance in his savings account had fallen from about Rs 87 to 88 lakh to about Rs 1 lakh. Haneef Khan said Rs 39 lakh had disappeared from his account, and Zakir said Rs 9.5 lakh was missing, which he discovered only after visiting the branch. One customer said:
“I neither received any message nor signed any document authorising the transfer of funds.”
Some customers have alleged that fixed deposits were closed before maturity without their consent, and that branch staff delayed updating passbooks and sharing transaction details, citing an ongoing RBI audit. Customers gathered outside the branch on Wednesday, joined by a farmers’ union, and police were deployed outside the bank.
The case and the bank’s response
The FIR was registered on a complaint by Shrichand, a resident of Birondi, and 18 customers have so far submitted written complaints. According to reports, the case may be transferred to the Economic Offences Wing. PNB has reportedly suspended five employees, including the branch manager, replaced the branch staff and begun an internal probe. The bank has said it will examine the complaints and try to recover the money, but has not confirmed the total amount.
These are allegations at the stage of investigation. Those under investigation are presumed innocent, and LawChakra expresses no view on the merits.
What legal recourse do customers have?
1. The bank’s liability for its own staff. A deposit is a debt the bank owes the customer, and a debit the customer never authorised is not a valid payment out of the customer’s money. Under the RBI’s customer protection framework on unauthorised electronic banking transactions, a customer has zero liability where the loss arises from contributory fraud, negligence or deficiency on the part of the bank, whether or not the customer has reported it. Where staff are alleged to be involved, the bank cannot shift the loss to the customer.
2. Complain to the bank in writing first. Affected customers should immediately lodge a written complaint with the branch and the bank’s grievance or nodal officer, attaching account statements, FD receipts and passbook copies, and keep the acknowledgement. They should ask for the full transaction trail, including the instruments, slips or electronic logs used for each debit or premature FD closure, and ask the bank to freeze further debits.
3. RBI Ombudsman. If the bank does not respond within 30 days, or the customer is not satisfied with the reply, a complaint can be filed free of cost with the RBI Ombudsman under the Reserve Bank – Integrated Ombudsman Scheme, 2026, in force since July 1, 2026, through the RBI’s complaint portal. There is no cap on the amount in dispute. The Ombudsman can award compensation of up to Rs 30 lakh for consequential loss and up to Rs 3 lakh for loss of time, expenses, harassment and mental anguish.
Under the new Scheme, the complaint must be filed within 90 days of the expiry of the bank’s 30-day response period or its last communication, whichever is later. A complaint is not maintainable if the same matter is already pending before a court or other forum.
4. Consumer Commission. A customer can also file a complaint for deficiency in service under the Consumer Protection Act, 2019, before the District Commission (claims up to Rs 50 lakh), the State Commission (Rs 50 lakh to Rs 2 crore) or the National Commission (above Rs 2 crore). There is a caveat. The Supreme Court has held, in Sant Rohidas Leather Industries v. Vijaya Bank, that consumer fora, being summary in nature, may decline disputes that turn on contested allegations of fraud or forgery requiring detailed evidence, leaving them to civil or criminal courts.
5. Civil suit for recovery. Customers can sue the bank in a civil court for recovery of the amount with interest. This route allows full evidence on disputed signatures or instructions, though it is slower.
6. Criminal complaint. Customers can give their written complaints to the police so that they become part of the investigation. Where bank staff are alleged to have misappropriated depositors’ money, the Bharatiya Nyaya Sanhita (BNS) provides for criminal breach of trust by a banker under Section 316(5), which carries up to life imprisonment, alongside offences of cheating and forgery. If electronic channels were used, customers should also report the loss on the National Cyber Crime Reporting Portal or the 1930 helpline.
7. Keep the paper trail. Customers should obtain certified statements, preserve FD receipts and passbooks, record dates of each complaint, and confirm that the mobile number and email registered with the bank are their own, since missing SMS alerts are a central part of the complaints.
New RBI rules from January 2027
Under amendment directions issued on June 24, 2026, applicable to transactions from January 1, 2027, commercial banks must reverse losses caused by their own negligence or deficiency, give zero liability for third-party breaches reported within five calendar days, resolve domestic fraud complaints within 45 days, and bear the burden of proving any customer liability. Transactions before that date are governed by the RBI’s existing customer protection framework.
This explainer is general information, not legal advice. Affected customers should consult a lawyer about their specific case.
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Case: FIR registered at Beta-2 police station, Greater Noida (sections not yet reported)
Bank: Punjab National Bank, Sector Pi-1 branch, Greater Noida
Amount alleged: About Rs 35 crore (unverified)
Date: October 2026