Odisha skeleton incident prompts Centre to issue nationwide advisory for regional rural banks

The Centre has directed all Regional Rural Banks (RRBs) in the country to adopt a more compassionate, transparent and citizen-centric approach while dealing with customers, particularly those from rural, tribal and other vulnerable communities, following the shocking incident in Odisha’s Keonjhar district with a tribal man forced to carry his deceased sister’s skeletal remains to claim her bank savings.

The advisory in the form of an official communication came in a letter from Minister of State for Finance Pankaj Chaudhary to Leader of Opposition and BJD president Naveen Patnaik, who had written to Union Finance Minister Nirmala Sitharaman expressing deep anguish over the incident and urging a “more humane banking administration, especially in remote tribal areas.”

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The incident sparked nationwide outrage after Jitu Munda reached the Malliposi branch of Odisha Grameen Bank carrying the skeletal remains of his deceased sister while seeking to withdraw Rs 19,402 lying in her account.

Replying to Patnaik, Chaudhary said the Department of Financial Services had examined the matter with Odisha Grameen Bank (OGB). The bank informed that the deceased account holder had not nominated any beneficiary, requiring submission of prescribed documents, including a death certificate and legal heir details, before the claim could be settled.

Following intervention by the local administration, the necessary documents were issued and the amount of Rs 19,402 was released jointly in favour of Jitu Munda and two other legal heirs, the Minister said.

The Department of Financial Services, however, viewed the incident seriously, observing that while adherence to banking procedures is essential, they must be implemented with sensitivity, empathy and effective communication, particularly in rural and tribal areas.

As an immediate measure, Odisha Grameen Bank suspended the Branch Manager of its Malliposi branch. With approval from its Board, the bank also issued an advisory to all field functionaries directing them to provide compassionate, empathetic and transparent services to customers.

To prevent recurrence of such incidents, the Department of Financial Services issued a nationwide advisory on May 29, 2026, to all 28 Regional Rural Banks, instructing them to ensure responsive and humane customer service, especially for customers belonging to rural, tribal and other vulnerable sections of society.