Vigilance investigation finds Dormant Account Scam of Rs. 14 lakh in SBI

A scam of ₹14.60 lakh has come to light at the State Bank of India (SBI)’s Personal Banking Branch (PBB) located on Mall Road, where a dormant account was fraudulently activated. Now, the bank’s Vigilance Department has started a full-scale investigation into the matter.

Dormant Account Misused to Withdraw Money

According to reports, a dormant account belonging to Shiromani Yadav, a resident of Civil Lines, Kanpur Nagar, was suddenly activated. This account had been inactive since 2022. Shockingly, ₹14.60 lakh was withdrawn from it after it was reactivated on March 25, 2025, through a fake e-KYC process.

Accused Deputy Manager Suspended

A Deputy Manager of the bank, who is also a member of the SBI Officers Association, is accused of being involved in the scam. He has been suspended while investigations are underway. Statements from the bank employees and officers who were working at the branch during that period have also been recorded.

Fake Aadhaar and Address Documents Under Probe

During the initial internal inquiry, it was found that fake Aadhaar cards and false address documents were used in the process of reactivating the account. These documents are currently being verified. Earlier, the case was being looked into by the Regional Manager of Lucknow and the Assistant General Manager of Kanpur. But now, Vigilance authorities have officially taken over the case.

CCTV Footage and Employee Statements Examined

As part of the investigation, CCTV footage from the Mall Road PBB branch and the World Bank branch has been examined. Officials from the Vigilance Department have also questioned the main accused and recorded statements from several employees from both branches.

Anonymous Tip Uncovered the Scam

The scam first came to light after an anonymous letter was sent to the Chief General Manager of SBI on May 1. The letter detailed how ₹14.60 lakh had been fraudulently withdrawn from the dormant account and named the Deputy Manager and other employees involved.

Interestingly, when internal discussions about the fraud began, the money was returned to the account on April 11, and the account was again deactivated on April 15—possibly in an attempt to cover up the fraud.

Investigation Report Expected Soon

Vigilance officers are now preparing their final report based on the documents, CCTV footage, and employee statements. This report is likely to be submitted to senior officials soon.

Source - hellobanker

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How to activate Dormant Bank Account

Do you have more than two bank accounts but do not use them often? If yes, then you must ensure that you either reactivate or close the account. As per the Reserve Bank of India guidelines, any savings account or current account which has seen no transactions for two years, will be deemed inoperative or dormant. Here are a few tips on how to reactivate your account.

Why does your bank account become inoperative or dormant?

• If there has been no transaction in the account over a one year or more, then it becomes inactive.
• However, if there has been no transaction for two whole years, then the account automatically becomes dormant.
• Only a savings account or current account can become dormant.

How do you know if your account is dormant?

• When you cannot make any transaction through any banking channel, be it ATM/phone/online.
• An inoperative account may not affect your credit history, but to avoid fraud, it is better to reactivate it.
• According to a World Bank report, India accounts for 195 million of the 460 million adults with dormant accounts around the world. At 43 per cent, the rate of dormancy is quite high measures to keep your account active.

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