A 28-year-old woman was arrested in Puducherry on Saturday for allegedly stealing Rs 4 lakh from an ATM of a private bank, superintendent of police C Maran said.
The theft took place on Friday night, he said.
The woman, who is from Bengaluru, has been staying in a village near Puducherry, the police official said.
Based on a complaint from a cash replenishment agency, the police used the CCTV footage, traced the woman to the neighbourhood of the ATM kiosk and recovered the money from her.
Three people from the agency were detained for interrogation as role of insiders in the theft was suspected, he said.