A significant financial fraud involving ATMs in Northeast Delhi has been uncovered, where 112 ATM cardholders reportedly withdrew an additional ₹8 lakh due to deliberate cash-loading discrepancies. According to police reports, ₹500 currency notes were mistakenly loaded into ATM trays designated for ₹100 notes, enabling cardholders to illegally withdraw substantially more cash than their actual account balance allowed.
Audit Reveals Massive Irregularities, Employees Under Investigation
Two Employees Face FIR, Custodians Allegedly Involved
Following an audit that exposed discrepancies in ATM cash transactions, two employees of the cash-management company responsible for refilling the machines are under police investigation. FIRs have been lodged against these individuals, with suspicion also falling on ATM custodians and their accomplices.
Police indicated that initial investigations revealed a pattern, suggesting deliberate manipulation rather than a simple human error.
Money Withdrawn by Relatives and Accomplices
Custodians Accused of Informing Known Associates About the Loophole
According to authorities, custodians and employees allegedly notified their relatives and acquaintances of the misloaded cash, enabling them to withdraw ₹500 notes at the value of ₹100 notes. This fraudulent act allowed them to withdraw five times the intended amount from their accounts.
The fraud reportedly continued unchecked for several days until audits revealed the financial irregularities, prompting an immediate investigation.
Custodian Claims Innocence, Cites Human Error
One Accused Custodian Argues Mistake was Genuine, Not Intentional
One accused custodian claimed innocence, stating it was an “unintentional mistake” during the process of filling ATM trays. According to his statement to the police, the error was discovered shortly afterward, and immediate steps were taken to rectify it. However, police remain skeptical, given the systematic nature and scale of the withdrawals.
Authorities continue their investigation, examining CCTV footage, employee records, and digital transaction logs.
Expert Opinion: ATM Machines Lack Ability to Detect Currency Denomination
Ashwani Rana, Founder of Voice of Banking, Explains Technical Limitations
Banking expert Ashwani Rana, founder of the ‘Voice of Banking’, clarified that ATM machines are incapable of identifying the currency notes loaded into them. He explained that ATM trays, known technically as cassettes, are pre-programmed for a particular denomination (e.g., ₹100, ₹500), and the machine dispenses cash based on cassette settings rather than the physical notes inside.
He stated, “If ₹500 notes are mistakenly placed in a ₹100 cassette, the ATM still treats these as ₹100 notes. Therefore, a person withdrawing ₹1,000 in reality would receive ₹5,000.”
