Partner - Risk Management
[email protected]
Finance Manager
Deputy Manager - Hr
+1 Other

Dear all,
I'm working for a private bank in the capacity of Branch Head, last wek I received a complaint from a customer of our bank claiming one of our team member has borrowed Rs 50,000/- from him and failed to repay it. In my initial investigation the staff member accepted that. subsequently he is aguing that he did not borrow the money , the brother of the staff member only borrowed that money. later the complaintant also agreed that he has lend the money to the brother. What action can I make against the staff member?

From Sri Lanka, Colombo
There is no clause of any action against money lending. If your employee has recieved bribe, yes you can take action. here the money has been given by one of your customer who is considered as third party and they cant claim through official network. Borrowing is commom and its with them to settle on thier own. AS you aware of the bank rules for opting loan and you know how recovery is done with the norms.
So what you can do in this case is ask your employee to pay it at the earliest and settle it amicably.

This is a very interesting scenario.

The money was borrowed by the brother of a staff of your branch.

It was not by a staff member.

however, it is likely that the brother came in touch with the customer through the staff member and that the request was sent by the staff member to the customer. If he has done so, or if the has used any incitement, offer of additional service or illegal gratification to convince the customer to give the loan, then he is open to action from your side. In fact, he may be liable to criminal persecution if any of the above involves cheating / misrepresentation to the client.

You need to check your standing orders, terms of employment and documents signed by the employee when he joined. There will probably be some rules against this. You should immediately take up the matter with the HR department and with your vigilance department. They may want him suspended pending inquiry and settlement of the matter as it is a sensitive subject.

Further, given that this involves customer goodwill and trust, you need to escalate this upwards to your operations head / zonal head and take action based on their recommendation.

Personally, i would like such an employee removed from my organistation as he can not be trusted. In a bank all employment is on "Ubrama Faide" which means of utmost good faith. You can not have an employee who is involved in any subterfuge as he may indulge in fraud using the banks name / property or his position in the bank.

From India, Mumbai
I also echo Mr. Banerjee's view
On the other hand, we have to also check whether the staff has taken bribe in the name of Loan for which he may not be willing to pay. Check the credential of the staff and also check whether any favor has been received by the customer from the bank to ascertain further

From India, Ahmadabad
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