A major banking fraud has surfaced in Madhya Pradesh's Ratlam, where an outsourced employee of UCO Bank allegedly duped around 40 customers of more than ₹85 lakh by fraudulently breaking their fixed deposits (FDs) and transferring the money into his own account and those of his relatives and associates. Police have arrested seven people, including the outsourced employee and a former branch manager, in connection with the alleged conspiracy.

The fraud came to light after multiple customers reported discrepancies in their bank accounts and fixed deposits. Investigators believe the scam involved unauthorized transactions carried out through the bank's mobile application and internal access to customer accounts.

Complaint Exposes the Fraud

The case began after Ratlam resident Dinesh Banjara lodged a complaint at Manak Chowk Police Station on June 30 against Rahul Rathore, an outsourced employee at UCO Bank's Lakkadpeetha branch.

According to the complaint, Banjara had visited the branch on May 14 to open an account and handed over ₹72,500 to Rahul, who accepted the money, issued a bank-stamped receipt, and asked him to collect his passbook and ATM card a few days later.

However, when Banjara later attempted to withdraw the deposited amount, he was informed that only ₹2,500 was available in his account. The discrepancy prompted him to approach the police, leading to a wider investigation.

Fixed Deposits Allegedly Broken Through Mobile App

During the investigation, police found that Rahul Rathore had allegedly used the bank's mobile application to prematurely break customers' fixed deposits without their knowledge. The funds were initially transferred to his own account before being distributed among the accounts of his relatives and acquaintances.

Police said that as the investigation progressed, more victims came forward with similar complaints. So far, authorities have identified nearly 40 customers whose fixed deposits, ranging from ₹20,000 to ₹5 lakh, were allegedly misappropriated.

The total amount involved in the fraud has been estimated at more than ₹85 lakh.

Former Bank Manager Among Accused

Investigators also found alleged involvement of former UCO Bank branch manager Trilok Jha, who was previously posted at the Ratlam branch and is currently serving in Vadodara, Gujarat.

Police allege that the fraud was carried out as part of a planned conspiracy involving both the outsourced employee and the former manager. The investigation is examining the extent of each accused person's role in facilitating the fraudulent transactions.

Money Routed Through Relatives and Associates

According to police, Rahul Rathore transferred the fraudulently obtained money from his account to the bank accounts of his brother-in-law and several acquaintances. Investigators believe these individuals were allegedly persuaded to allow their accounts to be used in exchange for financial benefits.

Authorities are tracing the money trail and examining all linked bank accounts to determine the complete flow of funds.

Seven Arrested, Investigation Continues

Police have arrested Rahul Rathore, former manager Trilok Jha, Rahul's brother-in-law Mukesh Rathore, and four other accused identified as Ravi Kumawat, Dinesh Dhirajshah, Arun Jain and Jitendra Kumawat.

Rahul Rathore has been remanded to police custody until July 9 for further interrogation, while the remaining accused have been sent to judicial custody.

Investigators said they are verifying additional complaints and have not ruled out the possibility of more victims or further arrests as the probe continues.

The case has raised serious concerns about internal banking controls, customer account security and oversight of outsourced personnel handling sensitive financial transactions.