Is Money Safe in PNB After the Greater Noida Fraud? What Happened, What the Bank Says and How Your Deposits Are Protected

For ordinary depositors, there is no sign of a wider risk to Punjab National Bank. The alleged fraud at PNB’s Sector Pi branch in Greater Noida involves unauthorised transfers from customer accounts by insiders, which PNB has reported to the authorities and says it will make good, with interest. It is a case of employee fraud at one branch, not a sign that the bank is failing. Separately, every depositor in a bank in India is insured by DICGC for up to Rs 5 lakh per bank.

That said, the case is a useful reminder of how customers can protect their own accounts. Here is what we know so far, and what the rules say.

What happened at PNB’s Greater Noida branch?

According to reports on the CBI case as of 31 October 2026:

• The CBI’s anti-corruption branch in Ghaziabad registered an FIR over an alleged fraud of about Rs 10.24 crore at PNB’s Sector Pi branch in Greater Noida, after a complaint by the bank on 23 October.
• A branch employee allegedly used the login credentials of six colleagues on the bank’s core banking system to move money out of customer accounts, allegedly at the direction of an outside individual.
• Methods reported include adding the accused as joint holders on fixed deposits, changing maturity payout accounts, closing FDs early and altering customers’ mobile alerts so they would not notice.
• The suspected fraud may have run for close to three years. The number of affected customers had not been confirmed.

Early media reports put the figure at around Rs 35 crore. PNB’s preliminary estimate is lower, at Rs 10.24 crore. The investigation is ongoing, so these numbers may change.

What has PNB said?

• PNB has said it will take legal action against those found guilty and that customers will get their money back, along with interest.
• About Rs 43 lakh had been refunded to three customers by the end of October, according to reports.
• Branch staff have been suspended or transferred, and the bank has started an internal accountability process.
• Separately, reports on 1 November said PNB suspended around 20 branch heads elsewhere after surprise inspections found outsiders handling banking work.

A bank employees’ union has asked for an audit of branches and warned against hasty action against staff. We will update this article as the investigation progresses.

Is my money safe in a public sector bank like PNB?

A branch-level fraud and a bank failure are very different things. In a fraud like this, the bank is the one that pays: money lost because of its own employees’ actions is the bank’s liability, not the customer’s. PNB is one of India’s largest public sector banks, regulated by the Reserve Bank of India and majority-owned by the Government of India.

The second layer of protection is deposit insurance.

How DICGC deposit insurance works

The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI, insures bank deposits:

DICGC cover applies when a bank is liquidated, merged or placed under restrictions by the RBI. It is not the route for recovering money lost to fraud at a working bank. In that case, the bank itself compensates the customer.

What do RBI rules say about unauthorised transactions?

Under the RBI’s customer protection directions on unauthorised electronic banking transactions, a customer has zero liability when the unauthorised transaction happens because of the bank’s contributory fraud, negligence or deficiency, whether or not the customer reports it. Where the fault lies with a third party and neither the bank nor the customer is at fault, the customer’s liability depends on how quickly they report it, and reporting within three working days protects them fully.

The practical message: report anything suspicious immediately, in writing, and keep the acknowledgement.

How to protect your bank account and FDs

1. Never switch off SMS and email alerts. In this case, alerts were allegedly altered. Check that your registered mobile number and email are correct.
2. Check your statement every month, including FD details, maturity instructions and payout accounts.
3. Look at the nominee and joint-holder details on every FD. Any name you do not recognise is a red flag.
4. Keep FD receipts and advice slips, and verify them in net banking or the app.
5. Spread large balances across more than one bank if you want each amount to stay within the Rs 5 lakh DICGC limit.
6. Report problems immediately to the branch and in writing. If the bank does not resolve it within 30 days, escalate to the RBI Integrated Ombudsman at cms.rbi.org.in. For cyber fraud, call 1930 or file a complaint at cybercrime.gov.in.

This article is for general information and is not financial advice. Check your own account details with your bank.

For more personal finance explainers, see our Markets and Money section.

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