Superintendent of Police Vivekanand said four armed criminals waylaid the agent Sunil Kumar and snatched the bag from his hand carrying the cash.
The incident took place in Kamruddinganj locality under Laheri police station, the SP said.
The victim had withdrawn Rs 2 lakh from a PNB branch and had taken Rs 17 lakh cash from home for purchase of a piece of land when motorcycle-borne criminals waylaid him and looted the cash.
The SP said efforts were being made to nab the criminals.