Over 200 Depositors Accuse CSP Operator of Unauthorized Withdrawals Through Biometric Misuse
A major alleged banking fraud has surfaced in West Bengal's Malda district, where more than 200 villagers have accused the operator of an Indian Bank Customer Service Point (CSP) of illegally withdrawing money from their accounts by allegedly misusing biometric authentication.
The protesters gathered outside the Indian Bank Customer Service Point at Nityanandapur in Kajigram Panchayat before marching to the bank's main branch in Malda town, demanding immediate action and recovery of their savings.
According to the allegations, CSP operator Satyajit Lala and his wife Nipa Lala siphoned nearly ₹2 crore from the accounts of hundreds of depositors over an extended period.
Depositors Allege Excess Withdrawals During Routine Transactions
According to the complainants, customers visiting the CSP to withdraw specific amounts were allegedly subjected to unauthorized excess withdrawals.
Several depositors claimed that while requesting withdrawals of around ₹10,000, substantially higher amounts—sometimes ₹30,000 or more—were allegedly withdrawn using biometric authentication, with customers receiving only the amount they had requested while the remaining funds were allegedly retained by the operators.
Residents also alleged that biometric authentication was collected during passbook update requests and other routine banking services, during which unauthorized withdrawals may have been carried out without customers' knowledge.
Many of the affected customers reportedly belong to economically weaker sections and possess limited financial literacy, making it difficult to verify transaction details immediately.
Server Issues Triggered Suspicion
According to the protesters, suspicions intensified over the past month after repeated withdrawal requests were allegedly declined due to claimed server failures and technical problems.
When several customers later approached the Indian Bank branch directly to verify their balances, they allegedly discovered significant discrepancies between their expected savings and the actual balances available in their accounts.
Victims claim the missing funds include personal savings, government welfare benefits, pension amounts, and proceeds from fixed deposits.
Several account holders have alleged individual losses ranging from ₹2 lakh to ₹5 lakh, while authorities continue to assess the overall financial impact.
Bank Seeks Written Complaints; Police Action Expected
A senior bank official stated that customers have been instructed to submit individual written complaints detailing deposits, withdrawals, and suspected discrepancies.
The bank has indicated that a detailed internal inquiry will begin after receiving the complaints.
Meanwhile, villagers have announced plans to file police complaints against the CSP operator and his wife.
According to local residents, both individuals have been missing for the past two days. Their residence and the Customer Service Point were reportedly found locked, while their mobile phones remain switched off.
Investigation to Examine Transaction Records
The allegations remain under investigation, and authorities have not yet independently verified the claims made by the depositors.
Investigators are expected to examine:
- Bank transaction histories
- Biometric authentication logs
- Micro-ATM transaction records
- Customer complaints
- CCTV footage, where available
- Banking audit trails
Officials will also determine whether internal control failures or procedural lapses contributed to the alleged fraud.
Shunyatax Global Insight
The incident highlights growing concerns surrounding biometric-enabled banking services operating through Customer Service Points in rural India. While CSPs have significantly expanded financial inclusion, experts emphasize that stronger transaction transparency, SMS alerts, biometric verification safeguards, periodic account reconciliation, and enhanced customer awareness are essential to prevent unauthorized withdrawals. As digital banking reaches remote communities, robust monitoring and financial literacy remain critical to protecting vulnerable depositors.
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