In a clear signal that the government will not tolerate insensitive banking practices, especially in rural and tribal areas, the Union Ministry of Finance has taken strong corrective action following a letter from Odisha’s Leader of the Opposition, Naveen Patnaik.
The issue involved the Malliposi branch of Odisha Grameen Bank in Keonjhar district, where the claim in a deceased customer’s account — which had no surviving nominee — was delayed pending submission of the death certificate and legal heir documents.
After local administration intervention, the required papers were obtained, and the modest claim amount of ₹19,402 was settled in favour of Jitu Munda and two other legal heirs.
While the Department of Financial Services (DFS) reaffirmed that “strict adherence to prescribed procedures is essential in banking operations,” it emphasised that these procedures “must be implemented with due sensitivity, empathy, and effective communication, particularly in rural and tribal areas.”
Immediate Actions Taken:
- The Branch Manager of the Malliposi branch has been suspended.
- Odisha Grameen Bank, with Board approval, has issued an internal advisory directing all field functionaries to deliver compassionate, empathetic, and transparent services.
- On 29 May 2026, DFS issued a nationwide advisory to all 28 Regional Rural Banks (RRBs) across India, mandating responsive and citizen-centric service delivery with special focus on rural, tribal, and vulnerable customers.
In his reply dated 12 June 2026 to Naveen Patnaik, Minister of State for Finance, Pankaj Chaudhary stated that the incident had been “viewed seriously” by the department.
