# Bank staff syndicate defrauds NRIs through forged loans against deposits 2026-08-13T00:52:18+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet Rediff reports that bank employees are systematically defrauding non-resident Indians (NRIs) and elderly depositors by creating fictitious loans against their fixed deposits using forged documents. The fraud operates through a cross-bank syndicate where staff at one branch create a lien on a deposit, then take fresh loans from other branches to cover the first loan before the depositor returns. Proceeds are often invested in property. Government data tabled in Parliament shows 1,935 employee-linked fraud cases in FY25, down from 2,624 a year earlier. But an IIM Bangalore paper, citing RBI data, states around 34 per cent of all banking frauds are internal, carried out by junior and mid-level staff. Detection is often accidental, and banks prefer quiet settlements to full recovery or prosecution. ## Coverage - rediff.com Tags: bank fraud, fixed deposits, forged loans, insider fraud, NRIs, RBI Canonical: https://indianopinion.org/bank-staff-syndicate-defrauds-nris-through-forged-loans-against-deposits/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/bank-staff-syndicate-defrauds-nris-through-forged-loans-against-deposits/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.