Worried About Liability After Resigning from a Bank Job? Let's Discuss the Risks and Consequences

Hello all, I worked in a PSU bank for around two years (on probation) and resigned from the services in mid-2013 before completing my probation. During my tenure, my work involved recommending agricultural loans based on my inspections, which were to be sanctioned by the branch manager. Recently, I heard from a known person in the same bank that a few loans were found to be impersonated, as the borrowers mentioned in the documents do not actually exist. I am now in another government service. While recommending loans, I followed the due process, but the borrowers deceived me by providing fraudulent documents that appeared genuine.

What could be the consequences for me? The bank has not yet contacted me.

If you had followed due process and can prove it, then you should be in the clear to a great extent. In each case, did you physically inspect the premises? What cross-checks were made for the genuineness of documents? Do not get into panic mode until the bank contacts you. How well informed is your known person? He may not have full information or may not be sharing fully, etc. If you have any records of loanees, etc., keep them well-preserved and act only if you get called by the bank for queries.

Due Diligence and Responsibility in Loan Sanctioning

How do you say 'Borrowers mentioned in the document do not exist at all' and still claim you followed all procedures? Fake documents can be created, but did you make an attempt to check the identity of borrowers? Isn't it part of due diligence?

If you are truly innocent and the Branch Manager bypassed you and sanctioned loans to ghost borrowers, you are safe. I am not saying you are guilty. However, if you blindly trusted some agent and didn't perform your duty, which led to this, you could be in trouble.

Again, I am not doubting your integrity. Many times, bank officers rely on the word of agents and don't conduct proper due diligence due to work as well as target pressure. This is not a proper forum to discuss this matter. Speak to an advocate and act according to his or her advice.

Regards