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Haryana RTS fined PNB Bank Manager for giving in-principle sanction but not disbursing Loan


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The Haryana Right To Service Commission has imposed a fine of Rs 3,000 on a former branch manager of Punjab National Bank, Badli branch, Sanjeev Kishore Rohatgi, for failing to adhere to the prescribed service deadline. This decision was made during a hearing conducted by the chief commissioner of the commission, T C Gupta, on April 10.

Background of the Case

The issue arose when the bank initially granted ‘principle’ approval for a loan to the complainant, but later refused to disburse the funds, citing an unsatisfactory Cibil score. During the hearing, it was revealed that the purchase was made on April 24, 2022, following the approval on April 21, 2022. However, when the customer came for distribution, it was discovered that the applicant’s Cibil score was not satisfactory, leading to the payment being withheld.

Commission’s Observations and Ruling

The commission observed that when a case is sponsored to the bank, it is the bank’s duty to conduct preliminary investigations before granting ‘principle’ approval. These investigations should include checking whether the customer is a defaulter, whether their Cibil score is satisfactory, and whether the customer complies with the bank’s guidelines and other relevant criteria.

Consequences and Responses

The fine imposed by the commission must be deposited in the state treasury, and the receipt of the deposited fine must be submitted to the commission within 30 days of the order. Failure to do so will result in the recovery of the amount according to the law for non-deposit of fines. The former branch manager, Sanjeev Kishore Rohatgi, along with other bank officials and the applicant, Shakuntala, were present during the hearing.

During the hearing, Rohatgi and the current branch manager, Amanpreet Bakshi, provided their perspectives on the situation. It was noted that the reason for non-distribution of the loan could only be attributed to Rohatgi. Bank officials explained that they approve loans to promote government schemes and conduct necessary checks only when issues arise.

Conclusion

The commission expressed disappointment over the bank’s actions, stating that in the name of promoting government schemes and assisting economically weaker sections of society, the bank officials first compelled the complainant to make a purchase, but subsequently refused to disburse the loan due to the applicant’s unsatisfactory Cibil score.

One Comment

  1. The facts reveals that the former Branch Manager did not check the loan proposal
    including CIBIL score meticulously and further it looks that due to pressure by the controller to increase number of sanction of Govt. sponsored schrmes, ‘letter of principal approval’ issued.
    It is my personal opinion that it was bonafied mistake and not ’cause of ignorance’
    But still the branch manager should not work under anyone’s pressure because the mistakes noticed in the documents as evidence cannot be erased and should not be.
    Hence, the BM did not work meticulously

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