CBI books former Punjab & Sind Bank branch heads in ₹1,621 crore mule account scam

• What happened: The CBI registered two FIRs against former branch heads of Punjab & Sind Bank, Sri Ganganagar, for allegedly using mule accounts to launder ₹1,621 crore from cybercrime and other illicit sources.
• Why it matters now: The case exposes serious lapses in bank compliance, KYC norms, and internal controls, raising concerns about financial security in public sector banks.
• What changes for people: Account holders and investors may demand stronger oversight, and regulators are likely to tighten banking compliance and monitoring mechanisms.
• Who is affected: Punjab & Sind Bank, its clients, regulators, and the wider banking sector, as well as law enforcement monitoring cybercrime-linked money laundering.

Sri Ganganagar, Rajasthan: The Central Bureau of Investigation (CBI) has booked former branch heads Aman Anand (main branch) and Vikas Wadhwa (Government Girls Senior Secondary School branch), along with several companies and individuals, in a massive mule account fraud involving ₹1,621 crore.

Investigators allege the branch heads opened 17 mule accounts using forged KYC documents, fake rent agreements, and fabricated business verification reports. The accounts, under the names of non-existent firms, were allegedly used to layer and transfer proceeds from cybercrimes and other illicit activities through various banking and digital channels.

How the scam unfolded

• 13 mule accounts were traced to the school branch; 4 accounts to the main branch.

• Bank officials allegedly colluded to bypass KYC norms, creating fake site visit reports and business verification documents.

• Transactions routed through these accounts totaled thousands of crores, with proceeds benefiting the accused while causing reputational and potential financial losses to the bank.

The CBI FIR notes that the scam not only facilitated money laundering but also exposed Punjab & Sind Bank to regulatory penalties, jeopardizing its financial stability and public trust.

Banking implications

Experts say such incidents highlight:

• The need for robust internal audits and compliance checks

• Stronger cybercrime monitoring and digital transaction tracking

• Enhanced regulatory oversight to prevent misuse of bank accounts for illicit purposes