The Central Bureau of Investigation (CBI) on Tuesday arrested the Branch Manager of Uttar Pradesh Gramin Bank, Berta branch at Makhauda Dham in Basti district, along with a private individual working as a peon in the same bank, for allegedly demanding and accepting a bribe of ₹10,000 from a loan applicant in exchange for releasing the remaining sanctioned loan amount.
According to the CBI, the arrests were made following a trap operation conducted on January 6, 2026, after the agency registered a case based on a complaint received on January 5, 2026. The complaint alleged corruption, abuse of official position and criminal conspiracy in connection with the disbursement of a government-backed loan.
The complainant stated that he had applied for a ₹5 lakh loan from Uttar Pradesh Gramin Bank under the Chief Minister Yuva Udhyami Yojana, a scheme aimed at promoting self-employment among youth. The loan was sanctioned, and an initial amount of ₹2,72,000 was disbursed to him.
However, the complainant alleged that the Branch Manager demanded an undue advantage of ₹15,000 for releasing the remaining portion of the sanctioned loan. The demand was allegedly conveyed through the bank peon, who acted as an intermediary between the complainant and the Branch Manager.
CBI officials said that after negotiations, the accused agreed to accept a reduced bribe amount of ₹10,000. Unwilling to pay the bribe, the complainant approached the CBI and lodged a formal complaint detailing the alleged demand and the role of both the bank official and the private individual.
After verifying the complaint, the CBI registered a case under relevant sections of the Prevention of Corruption Act and provisions related to criminal conspiracy. The agency then laid a trap on January 6, deploying its team to catch the accused in the act.
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During the trap operation, the Branch Manager and the peon were caught red-handed while allegedly accepting the bribe amount of ₹10,000 from the complainant. The tainted money was recovered on the spot, and both accused were taken into custody immediately after the transaction, officials said.
In an official statement, the CBI confirmed that both the accused have been arrested and that necessary legal formalities were completed following the trap. The arrested individuals are scheduled to be produced before the competent court, where the agency is expected to seek further judicial custody for questioning and investigation.
Officials familiar with the case said the investigation will also examine whether similar illegal demands were made from other beneficiaries under the CM Yuva Udhyami Yojana or other loan schemes at the same bank branch. The role of additional bank staff, if any, is also under scrutiny.
The case has once again highlighted concerns over alleged corruption in the implementation of government welfare and credit schemes, particularly those aimed at encouraging entrepreneurship among youth. Such schemes are designed to provide financial assistance without undue hurdles, and any demand for illegal gratification defeats their purpose, officials said.
CBI sources said misuse of official position by public servants to extract bribes from loan applicants not only violates the law but also undermines public trust in banking institutions and government-backed initiatives.
The Uttar Pradesh Gramin Bank has not issued a detailed official response so far. However, sources indicated that departmental action may be initiated against the Branch Manager based on the outcome of the criminal proceedings.
The CBI reiterated its appeal to citizens to come forward and report instances of corruption, assuring that complaints would be handled confidentially and acted upon strictly in accordance with the law.
