CBI Files FIRs Against Punjab & Sind Bank Officials
The Central Bureau of Investigation (CBI) has launched a serious probe into allegations against former officials of Punjab & Sind Bank, specifically targeting those who served in Sri Ganganagar. The agency registered two FIRs regarding the opening of mule accounts linked to a staggering ₹1,621 crore generated from cybercrime and other illegal activities.
This investigation commenced on January 16, 2026, following preliminary inquiries that uncovered 13 mule accounts at the bank’s Government Girls Senior Secondary School branch and four in the main branch in Sri Ganganagar. These accounts were allegedly employed to mask the illicit origins of the funds.
Understanding Mule Accounts
A mule account is typically established using forged documentation, allowing illicit funds to be laundered often without the knowledge of the individual’s identity used for setting up the account. CBI officials stated that these fake accounts were created to facilitate the movement of illegally acquired money through various banking channels and digital platforms.
“The accounts were opened through a criminal conspiracy involving unknown bank officials, violating Know Your Customer (KYC) procedures and due diligence,” an official said. Such practices raise severe questions about the adherence to banking norms and the responsibilities of the bank’s employees.
Details of the Allegations
The investigation revealed that the accused, including Aman Anand, the former chief manager of the main branch, and Vikas Wadhwa, from the Government Girls Senior Secondary School branch, allegedly collaborated with various companies and individuals to falsify documents. The CBI reported the use of fabricated KYC forms, false rent agreements, and other misleading paperwork to establish these accounts.
Investigators noted that all 17 firms affiliated with the account openings were non-existent. “Fake site visit reports and sham business verification processes were invented by bank officials to facilitate these transactions,” the FIR claimed.
Magnitude of Transactions
The scale of the fraudulent activities was extraordinary, with transactions amounting to thousands of crores of rupees being routed through these accounts. The FIRs maintain that the mule accounts were essential for layering and transferring funds gained from cybercrimes and other nefarious operations.
The CBI underlined that these illegal practices not only enriched the accused but also inflicted reputational damage on Punjab & Sind Bank. If the allegations are substantiated, the bank may face severe penalties, impacting its financial stability.
Authorities’ Response
Officials at the CBI emphasized the need for accountability in financial institutions. “Our findings reveal a deep-rooted issue that not only involves individual misdeeds but potentially systemic failures within the bank’s operations,” a spokesperson stated.
The agency has announced that it plans to extend the investigation to cover any additional individuals who may have been engaged in the illicit operations. By doing so, the CBI aims to ensure that all responsible parties are held accountable.
Comparative Cases of Financial Crime
This isn’t the first case involving banking irregularities. India has seen several high-profile cases in the past, emphasizing the vulnerabilities of financial systems. Recently, another investigation in Bengaluru led to the arrest of 12 individuals involved in a similar mule account scam, underscoring the trend of banking fraud linked to cybercrime.
In contrast to previous cases, the current investigation focuses not just on the individuals opening the accounts but also on institutional accountability. “Banks must revamp their internal protocols to prevent such fraudulent activities in the future,” a financial expert noted.
Future Steps and Consequences
As the CBI continues its investigation, further details on the implications for the bank’s operations and the individuals involved are expected. The financial sector is likely to come under increased scrutiny, leading to possible reforms in banking regulations to mitigate the risk of similar frauds occurring.
Officials suggest that both regulatory and legislative measures may need to be revisited to strengthen KYC norms across all banking institutions in India. This incident has reignited the debate around banking oversight and the adequacy of existing measures to combat fraud.
Minor Updates and Further Developments
While the CBI’s probe unfolds, further updates from financial authorities and the banking industry are awaited. Experts predict that rather than just administering penalties, significant changes in governance and operational standards will be necessary to restore public confidence in the banking system.
In light of this incident, it is crucial for banks to take proactive steps to enhance their surveillance mechanisms. “The financial industry requires a fundamental shift in how it operates, particularly concerning risk management and compliance,” said a banking consultant.
As investigations progress, the focus on mending the trust in financial institutions will be paramount, not just for Punjab & Sind Bank but for the Indian banking sector as a whole.