A relationship manager employed at ICICI Bank’s Gumanpura branch in Kota has been arrested for allegedly orchestrating a fixed deposit (FD) fraud worth ₹4.58 crore, local police confirmed on Friday.
The accused, identified as Rahul Sharma, reportedly misused his authority to create fake FD accounts by forging documents and diverting funds into personal or associated accounts. The fraud came to light during an internal audit conducted by the bank, which later prompted a formal complaint to the police.
“Based on the evidence gathered, the individual has been arrested. We’ve recovered several forged documents and digital records. The investigation will further look into whether the accused had any accomplices,” said Rajesh Meena, Superintendent of Police, Kota.
The incident was initially triggered by customer complaints regarding inconsistencies in their fixed deposit statements. One prominent case involved a local businessman whose ₹50 lakh FD had allegedly disappeared without his consent.
Acting on these complaints, the bank conducted a thorough review and found multiple irregularities linked to Sharma’s operations. Upon discovery, the bank immediately suspended the accused and informed law enforcement authorities.
In a statement issued by ICICI Bank, the organization reiterated its commitment to customer protection and transparency. “We have taken strict action against the individual involved and are cooperating with the authorities. We assure our customers that corrective steps are underway and necessary support will be provided to those impacted,” the statement read.
Sharma has been charged under relevant sections of the Indian Penal Code, including Section 409 (criminal breach of trust), Section 420 (cheating), and Sections 467 and 468 related to forgery. Provisions under the Information Technology Act have also been applied due to the use of digital platforms in executing the fraud. He was produced in court on Friday and has been remanded to police custody.
The case has once again raised alarms over internal control systems in banking institutions. Financial analysts have stressed the urgent need for advanced fraud detection technologies and stricter verification mechanisms, especially for staff handling high-value accounts.
The Reserve Bank of India (RBI) is also expected to take cognizance of the case. Sources suggest that a wider review of fraud-prevention measures in private sector banks may follow.
As the investigation continues, further revelations could emerge, potentially exposing a broader network behind the fraudulent activities. Authorities have assured the public that all necessary steps will be taken to recover the siphoned funds and hold those responsible accountable.
