Central Bank of India fraud allegations involve ₹13.97 crore diverted through 187 unauthorised transactions from an RBI settlement account. Mumbai cyber police are investigating the suspected breach.
MUMBAI: The Central Bank of India has reported an alleged financial fraud involving ₹13.97 crore transferred from its settlement account with the Reserve Bank of India (RBI) through 187 unauthorised transactions between October 15 and 17, 2026.
The suspected Central Bank of India fraud came to light after the bank identified transactions that did not appear in its regular banking records. According to reports published on October 24, 2026, Maharashtra’s Nodal Cyber Police have registered a case against unidentified individuals for alleged cheating and impersonation.
How did ₹13.97 crore disappear from the RBI settlement account?
According to the bank’s complaint, unidentified individuals allegedly gained unauthorised access to the central Structured Financial Messaging System (SFMS) server operated by Indian Financial Technology and Allied Services (IFTAS), a wholly owned RBI subsidiary.
The suspected access reportedly occurred through the SFMS server connected to the bank’s core banking system.
SFMS is used to exchange payment instructions between banks through systems including Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).
Investigators are examining how payment instructions were processed without corresponding records appearing in the bank’s normal transaction systems.
Where did the money go?
The bank’s complaint states that the money was transferred through 187 transactions into accounts across 36 banks.
The transfers occurred over three consecutive days, with six transactions on October 15, 88 on October 16 and 93 on October 17.
An internal examination reportedly found no matching records in branch transactions, internet banking, mobile banking or the bank’s core banking system.
The accounts identified as originating payers also did not belong to Central Bank of India, raising further questions about how the payment instructions entered the settlement process.
What action have the RBI and police taken?
Following the discovery, the bank informed the RBI, IFTAS, the Daksh portal, the National Critical Information Infrastructure Protection Centre and the Indian Computer Emergency Response Team.
Mumbai cyber police have registered a criminal case against unknown individuals.
Investigators are examining the suspected unauthorised access, beneficiary accounts and transaction records to establish how the funds were transferred.
No confirmed identification of the individuals responsible has been reported.
What does the incident mean for bank customers?
The reported Central Bank of India fraud highlights the importance of secure payment infrastructure, particularly systems that handle large interbank transactions.
However, the available reports do not establish that individual customers’ online banking accounts were directly compromised.
Customers should continue checking account statements, enabling transaction alerts and reporting unfamiliar activity through official banking channels.
The investigation will determine the technical cause of the suspected breach and whether additional security measures are required across the affected systems.
The case also raises broader questions about how financial institutions can prevent unauthorised transactions from bypassing standard banking controls.
Impact to expect
The alleged incident could lead to closer scrutiny of banking cybersecurity, financial messaging infrastructure and transaction verification procedures in India. The investigation may also encourage banks to strengthen monitoring systems designed to identify suspicious transfers and protect customer funds.
