Uttar Pradesh Gramin Bank issues Notice to Branch Manager for closing Branch without Permission

Jaunpur: Users on Social Media are criticising Uttar Pradesh Gramin Bank. But Why?

The Regional Office of Uttar Pradesh Gramin Bank (UPGB), Jaunpur, has issued a notice to a branch manager for ignoring instructions given during a video conference held earlier in the day.

The email stated that if any loan account slips into NPA, the Branch Manager must take permission from the Regional Head before closing the branch. However, it was found that the branch carried out the EOD without seeking permission from higher authorities. The Regional Office has termed this as indiscipline.

The branch manager has now been asked to give a written explanation, explaining why the orders were not followed.

In banking, if a customer fails to deposit money and the loan account turns into an NPA, the responsibility does not lie entirely with the Branch Manager. Repayment of loans is primarily the borrower’s duty, and no branch official can compel a customer to deposit funds against their will.

However, the Branch Manager does carry an important responsibility in such situations. Their role is to regularly monitor sensitive accounts, take timely recovery measures, and immediately inform higher authorities if there is any risk of default.

Therefore, if the Branch Manager has taken all due steps but the customer still defaults, it cannot be considered the manager’s fault. But if the manager ignores directions or fails to follow the prescribed procedure, then it becomes a case of negligence and indiscipline.