Police have arrested a former branch manager of Indian Overseas Bank in connection with the embezzlement of nearly ₹44 lakh from the accounts of rural customers. The accused was produced before a court and remanded to judicial custody.
The case pertains to the Kitham branch of the bank, where the accused, Aishwarya Kumar, allegedly misused his official position to illegally withdraw funds from customers’ loan accounts. Investigators said the fraud involved unauthorised transfers from the accounts of five rural account holders.
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According to police records, Kumar exploited access credentials meant for senior officials and used them to execute fraudulent transactions. Between multiple transactions, a total amount of ₹43,96,923 was transferred from the loan accounts of unsuspecting customers. The money was first credited to the bank account of his wife, Shalini, and later routed into his own account, effectively concealing the trail, police said.
The alleged fraud came to light during an internal review after Kumar’s transfer from the branch. Following preliminary verification, a formal complaint was lodged at the Achhnera police station on July 16, 2025, triggering the registration of a criminal case under relevant sections.
Police said the investigation confirmed that the transactions had no authorisation from the account holders and were carried out without their knowledge. The funds, meant for agricultural and personal loans, were diverted entirely for personal use.
Acting on specific intelligence, the Achhnera police team arrested the accused near Raibha bridge on Tuesday. He was subsequently produced before the court, which ordered his judicial custody.
Officials said further investigation is underway to ascertain whether similar irregularities were committed during his tenure and to verify if any internal lapses contributed to the prolonged misuse of system access.
The case has once again highlighted concerns over internal controls and monitoring mechanisms in rural banking operations, particularly in branches handling high volumes of loan-linked transactions.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
