Axis Bank ATM Deposit Scam: ₹1.38 Crore Diverted by Cash Management Firm Employees in Bengaluru
The Bengaluru police have registered two separate First Information Reports (FIRs) against employees of a cash management firm for allegedly misappropriating ₹1.38 crore from Axis Bank by diverting ATM deposits over several months. The fraud, which occurred between 2024 and 2025, came to light following a routine bank audit, prompting swift legal action.
Details of the Registered FIRs
According to Mohammad Sujitha, Deputy Commissioner of Police (DCP) for the South-East division, the FIRs were filed at the Koramangala police station on January 19, 2026, based on complaints lodged by Axis Bank. The accused are employees of Hitachi Payment Services Private Ltd, a firm responsible for cash management services.
The first FIR names four individuals: Praveen, Dhanasheka A, Ramakka, and Harish Kumar. They are alleged to have collected ₹57.96 lakh from Axis Bank's Koramangala branch for deposit into ATMs. However, an audit later revealed that the funds were never deposited, indicating a deliberate diversion.
The second FIR involves three employees: Harish Kumar, Praveen Kumar, and Varun. In this case, they are accused of misappropriating ₹80.49 lakh through similar fraudulent activities. Police officials noted that the accused did not take the money in large sums but rather in small amounts over time to avoid suspicion.
Investigation and Police Response
A police official explained, "They took small amounts during 2024-25 so that no one suspected them. The incident only came to light when bank authorities audited and informed the cash management services firm." This method of gradual theft allowed the fraud to go undetected for an extended period.
DCP Sujitha clarified the nature of the cases, stating, "The said cases pertain to criminal breach of trust and cheating and are not robbery cases. Investigation is in progress." The police have formed special teams to track down and apprehend the absconding accused, emphasizing the seriousness of the financial crime.
Context and Broader Implications
This incident highlights vulnerabilities in cash management processes within the banking sector. It follows another high-profile case in Bengaluru where a gang intercepted an ATM cash-loading vehicle in November last year, making off with ₹7.11 crore. Such events raise concerns about security protocols and oversight in financial transactions.
The fraud underscores the importance of regular audits and robust internal controls to prevent similar occurrences. As the investigation continues, authorities are focused on bringing the perpetrators to justice and recovering the misappropriated funds.
