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A case was registered after the mother of the victim approached police and the accused was arrested from his home, police said.
The accused stays in the same locality as the victim.
The incident happened on Saturday afternoon, when the accused called the minor girl outside her home on the pretext of telling her something, they said.
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He allegedly threatened her not to inform anyone about the incident. However, the girl informed her parents and they filed a police complaint.
A case under section-6 of POCSO (Protection of Children from Sexual Offences) act was registered, police said.
The father of the accused is a DTC employee.
Police said that they are probing whether the accused has previously been involved in any such case.
The girl has been sent for counselling.