A 26-year-old relationship manager at ICICI Bank in Kota has been arrested in a ₹4.58 crore financial scam spanning three years. Exploiting her position and the trust of unsuspecting account holders, she allegedly redirected customer funds into high-risk derivative trading. Investigators say she tampered with banking systems to mask her actions.
The Trust Betrayed: How a Bank Manager Exploited Elderly Clients
In a case that has sent shockwaves through India’s banking sector, a 26-year-old ICICI Bank relationship manager has been arrested for allegedly defrauding customers of ₹4.58 crore between 2020 and 2023. The woman, who was entrusted with managing the accounts of high-net-worth individuals and elderly clients, is accused of diverting their funds into high-risk financial instruments without their knowledge or consent.
The accused allegedly siphoned funds from multiple accounts, including those belonging to senior citizens, using forged documents and system manipulation.
According to the Rajasthan Police’s Economic Offences Wing, the accused meticulously manipulated internal banking systems, forged transaction approvals, and altered contact details to ensure customers remained unaware of the withdrawals.
A senior investigator involved in the case stated that she had access to sensitive customer information and used it to carry out transactions while ensuring alerts and verification calls were rerouted or blocked. Most of the affected clients were elderly individuals unfamiliar with digital banking, making them easy targets.
A Calculated Fraud
The accused’s modus operandi was intricate and sophisticated. Investigators found that she created false investment narratives, gained power of attorney in certain cases, and even forged signatures to initiate fund transfers.
Once the funds were in accounts controlled by her, she reportedly poured them into futures and options (F&O) trading, one of the most volatile segments in the stock market. Officials say her trading was marked by reckless risk-taking, fueled by an ambition to turn massive profits.
Ironically, the scheme began to unravel when losses mounted, and she could no longer maintain the fabricated balances in client accounts. A complaint from a senior citizen who noticed unexplained account activity triggered a forensic audit.
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Cracks in the System: A Larger Question of Oversight
The arrest raises serious questions about internal oversight within private sector banks, particularly in regional branches. Experts argue that while relationship managers are expected to be close to customers, this proximity must be backed with robust checks and balances.
This case is a wake-up call. Relationship managers have access to vast financial powers without always facing equivalent accountability. What’s alarming is not just the fraud, but how long it went unnoticed, was a statement by a former banking personnel.
ICICI Bank has issued a statement confirming the dismissal of the employee and is said to be cooperating fully with the authorities. The bank is also reportedly initiating a complete internal review of relationship management protocols.
The accused has been charged under multiple sections of the Indian Penal Code (IPC), including Sections 420 (cheating), 468 (forgery for the purpose of cheating), 471 (using forged documents), and 409 (criminal breach of trust by a public servant or banker). She is currently in judicial custody.
Police have frozen multiple trading accounts linked to her and are in the process of tracing the financial trail. A team from the Securities and Exchange Board of India (SEBI) is also likely to probe violations related to unauthorized trading.
About the author – Prakriti Jha is a student at National Forensic Sciences University, Gandhinagar, currently pursuing B.Sc. LL.B (Hons.) with a keen interest in the intersection of law and data science. She is passionate about exploring how legal frameworks adapt to the evolving challenges of technology and justice.