Odisha: Centre pushes citizen-centric banking reforms after Keonjhar row

Bhubaneswar, June 22 (IANS) Acting on concerns raised by Leader of Opposition Naveen Patnaik, Union Minister of State for Finance Pankaj Chaudhary has written to the BJD president informing him that the Department of Financial Services under the Union Finance Ministry has taken serious note of the alleged harassment faced by tribal man Jitu Munda at an Odisha Grameen Bank (OGB) branch in Malliposi, Keonjhar district, in April this year.

The Department has directed Regional Rural Banks to ensure compassionate and transparent service for vulnerable groups.

On April 27, Munda reached the Malliposi branch of OGB carrying the skeletal remains of his sister, Kalara Munda. He had exhumed the body after bank officials asked him to produce a death certificate as well as legal heir documents to initiate the death claim process and withdraw the deposit from his deceased sister’s account.

The incident sparked massive nationwide outrage on social media, with people and opposition parties targeting the bank and the state government, demanding reforms in rural banking practices.

The BJD supremo also wrote a letter to Union Finance Minister Nirmala Sitharaman on May 2 expressing anguish and concern over the shocking incident. In response, Chaudhary informed Patnaik that the matter was immediately examined with Odisha Grameen Bank.

According to the bank, the deceased depositor’s account did not have a surviving nominee and, therefore, settlement of the claim required submission of prescribed documents, including a death certificate and legal heir details.

The bank further informed that, following intervention of the local administration, the requisite documents were issued and the claim amount of Rs 19,402 was subsequently settled in favour of Jitu Munda and two legal heirs.

Chaudhary said the incident had been viewed seriously by the Department of Financial Services. He emphasised that while strict adherence to prescribed procedures was essential in banking operations, it was equally important that such procedures be implemented with sensitivity, empathy, and effective communication, particularly in rural and tribal areas.

He further stated that, taking serious note of the incident, the OGB had suspended the Branch Manager of the Malliposi branch. The bank also issued an advisory to its field-level functionaries, directing them to ensure transparent, compassionate, and customer-friendly service delivery.

“Further, with a view to reinforcing citizen-centric banking services and preventing the recurrence of such incidents across 28 RRBs in the country, an advisory has been issued by the Department of Financial Services to all Regional Rural Banks on May 29, 2026, advising them to ensure responsive, compassionate, and transparent customer service delivery, particularly for customers belonging to rural, tribal, and other vulnerable sections of society,” Chaudhary said.

–IANS

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