Odisha Govt to Recommend Action Against Bank Officials Over Keonjhar Incident

Bhubaneswar: The Odisha government will recommend strict action against officials of the Indian Overseas Bank (IOB)-sponsored Odisha Grameen Bank over alleged procedural lapses linked to a shocking incident in Keonjhar district, Revenue and Disaster Management Minister Suresh Pujari said on Saturday.

The controversy pertains to a tribal man carrying his sister’s skeletal remains to a bank branch to establish proof of her death for claim processing.

Addressing mediapersons, Pujari said the proposed action would be based on the findings of the Revenue Divisional Commissioner (RDC) inquiry report into the matter.

He noted that the bank could have initiated the required process internally if documents such as death and legal heir certificates were necessary. “The bank had the option to obtain these documents through official communication with the concerned authorities,” the minister said.

Pujari further stated that had the institution been under the administrative control of the state government, immediate disciplinary measures would have been taken. “Prima facie, negligent staff would have been suspended. Since the bank is not under the state’s administrative control, the government will forward the RDC report to the competent authorities and recommend action against the erring officials,” he added.

Meanwhile, the Odisha Grameen Bank Association has opposed any punitive action, claiming that the employees were not responsible for the incident and warning of possible agitation.

Rejecting the claim, the minister asserted that bank staff have a clear responsibility to guide customers, particularly those unfamiliar with banking procedures. “If a customer is uneducated and unable to understand procedures, it is the duty of the staff to assist. The required certificates could have been obtained by writing to the concerned authorities,” he said.

“Shirking responsibility is not good governance. Those claiming there was no lapse need to introspect. If anyone threatens agitation against legal action, they are free to do so,” Pujari added.

A day after the incident sparked widespread outrage, Indian Overseas Bank defended its staff, stating that they had acted in accordance with established norms. The bank said the man, identified as Jitu Munda (50), had visited the Malliposi branch for the first time in an inebriated condition, created a disturbance, and later returned with human remains.

The bank further attributed the episode to his lack of awareness regarding the claims process and his refusal to follow the procedures explained by the branch manager.