Muzaffarnagar: An alleged financial irregularity involving savings and Kisan Credit Card (KCC) accounts has come to light at the Budhana branch of UP Gramin Bank.
Around 25 account holders approached the bank on Saturday and complained that nearly ₹1 crore had allegedly been misappropriated from their accounts. Following the complaints, the bank’s regional office conducted a preliminary inquiry and found irregularities in some accounts.
A recommendation has subsequently been sent to the bank’s Lucknow headquarters for the suspension of the former branch manager, who was recently transferred to another branch, along with another employee.
The matter came to light after a new branch manager took charge and account holders from several villages began reporting unauthorised withdrawals from their accounts. Customers from Badkarta, Nagwa, Baroda and Budhana areas told bank officials that money had been withdrawn from their savings accounts through online transactions. Some account holders also reported discrepancies in their Kisan Credit Card accounts, saying that funds available in the accounts had gone missing.
As the number of complaints increased, the matter was brought to the attention of the bank’s Muzaffarnagar regional office. The regional management sent a four-member team to Budhana to investigate the matter under the leadership of a deputy regional manager. The team includes experts associated with IT and audit functions. It has begun examining transactions, digital entries and banking records related to the accounts.
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According to bank officials, the preliminary inquiry has revealed irregular transactions and discrepancies in records associated with some accounts. Based on the findings, a recommendation has been sent to the headquarters for suspending the former branch manager, who was recently transferred to the Almaspur branch, and another employee. However, the individual responsibility of any employee has not been conclusively established at this stage, as the detailed investigation is still underway.
Regional management said that the allegation of approximately ₹1 crore in irregularities is based on the complaints submitted by account holders. The exact amount of financial loss will be determined only after a detailed audit and examination of all the accounts concerned. The bank is also investigating how the alleged unauthorised transactions were carried out and through which accounts or channels the money was transferred.
All employees of the branch have been brought within the scope of the investigation. Bank records, computer systems, login activities and digital evidence linked to the transactions are being examined. Officials said that if the investigation establishes the involvement of any other employee, action could also be taken against them in accordance with the applicable rules.
The complaints involve both savings accounts and KCC accounts, making it necessary for investigators to determine whether the alleged unauthorised withdrawals from the two categories followed the same pattern or involved different methods. The bank is also matching older and recent transactions to identify suspicious entries and determine when the alleged irregularities began.
The bank is examining account activity on a wider scale to identify any other customers who may have been affected. Officials have indicated that the number of complaints could increase as the detailed investigation progresses. Customers whose accounts show unusual transactions are also being identified as part of the audit process.
The preliminary report has been forwarded to the bank headquarters, where the recommendation for suspension and findings of the detailed audit will be considered for further action. Investigators are examining the period during which the alleged irregularities occurred, the actual financial loss, the method used for the digital transactions and the possible involvement of individuals connected with the transactions.
Bank officials said the actual amount allegedly misappropriated and the responsibility of those involved will become clear only after the detailed audit and investigation are completed. The bank is continuing its scrutiny of financial records and digital transaction trails to establish the full extent of the alleged irregularities.
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