Umashankar Dubey, cashier of a local bank, was arrested from Kamal Sagar village in Mau and Rs 20.50 lakh was recovered from him, the sources said.
An FIR was registered against Dubey, branch manager Yogendra Singh and office assistant Ritesh Kumar Tiwari on complaint of senior bank manager B K Singh when Rs 21.9 lakh was found missing from the branch, they said.
A search is on to nab the other two accused, they said.