UCO Bank FD Fraud: 7 Arrested for Cheating 40 Customers of Over Rs 85 Lakh in Madhya Pradesh
A major banking fraud has been uncovered at the UCO Bank branch in Lakkadpitha, Ratlam, Madhya Pradesh. Police have arrested seven people, including an outsourced bank employee and a former UCO Bank manager, for allegedly cheating around 40 customers by prematurely closing their Fixed Deposits (FDs) and misappropriating more than ₹85 lakh.
According to the police, the accused illegally closed customers’ fixed deposits, transferred the money into their own bank accounts and later routed the funds through the accounts of relatives and acquaintances.
How the UCO Bank FD Fraud Was Carried Out
According to the investigation, the outsourced employee accessed customers’ Fixed Deposit (FD) accounts through a mobile application and prematurely closed the deposits without the customers’ knowledge.
After closing the FDs, the accused transferred the money into his personal bank account. The funds were later moved to the bank accounts of his relatives and acquaintances to conceal the money trail. Police believe the fraud continued until customers began to notice irregularities in their accounts.
Complaint That Exposed the Fraud
The ongoing scam came to light after a bank customer, Dinesh Banjara, lodged a complaint at Manak Chowk Police Station on 30 June.
According to the complaint, Dinesh visited the UCO Bank Lakkadpitha branch on 14 May to open a bank account. He handed over ₹72,500 to Rahul Rathore, who introduced himself as a bank employee. Rahul deposited the amount and issued a stamped receipt. He asked Dinesh to return after a few days to collect the passbook and ATM card.
When Dinesh later visited the bank to withdraw the deposited money, he found that only ₹2,500 remained in the account. This raised suspicion, and he filed a police complaint.
Around 40 Customers Became Victims
After news of the fraud spread, several other customers approached the police with similar complaints. The investigation revealed that nearly 40 customers had allegedly lost their Fixed Deposit money after their FDs were closed without authorization. The amount involved in each case ranged from ₹20,000 to ₹5 lakh. Police estimate that the total fraud exceeds ₹85 lakh.
Former UCO Bank Manager Also Arrested
Police investigations also found the alleged involvement of a former UCO Bank manager in the fraud. According to investigators, the former manager allegedly worked with the outsourced employee during the execution of the scam.
The police claim that some of the fraudulently obtained money was transferred to accounts connected to the former manager and other associates. The former manager is currently posted in Vadodara, Gujarat.
Seven People Arrested
The police have arrested seven accused in connection with the case. The arrested persons include:
- Rahul Rathore, outsourced employee at UCO Bank
- Former UCO Bank manager Trilok
- Mukesh, brother-in-law of Rahul Rathore
- Ravi
- Dinesh
- Arun
- Jitendra
According to the police, Rahul Rathore has been remanded to police custody, while the remaining accused have been sent to judicial custody.
Safety Tips for Fixed Deposit Customers
The incident highlights the importance of regularly monitoring bank accounts and Fixed Deposit investments. Customers should:
- Regularly check their Fixed Deposit status through official banking channels.
- Register for SMS and email alerts for all banking transactions.
- Immediately report any unauthorized transaction to the bank.
- Never share banking credentials or OTPs with anyone.
- Periodically review account statements and FD details.
