Bank loan

One branch manager can initiate criminal proceedings against previous branch manager but with the permission of the appropriate authority of the bank.  Bank generally has its own quasi judicial proceedings in the form of departmental inquiry against officials misusing their authority and misappropriating banks funds.

Thanks much for the suggestion.

The basic question that needs clarification is as a customer, while getting the loan, along with other formalities you supplied the photo, photo id, ration card, pan card etc, after complition of all documents and verification of documents the loan was sanctioned. How can it be possible that for the same person from the ID proofs you get the different middle or last name?

If so, then why not the name of loanee with different middle or sauname is mentioned on the printed loan statement from the bank? The printed bank loan statement shows the correct name of the loanee in all loan accounts.

if it is the fraud case, then who is responsible, the bank or the loanee? how come loanee had the access to the computer system of the bank to change the middle or last names? who filled the form for getting loan the loanee or the bank personnal ?

kindly suggest.

regards

arvind 

Particulars of the account holders are entered by clerical staff.  So clerical errors possible.  And that it is all generally known to bank employees when such fraud transactions take place, they take it easy because clerical staff have nothing to lose, only Manager is held responsible.  As clerical staff is aware that it is same borrower who availed three loans and as they generally have face to face relationships with them (in villages, unlike in cities, clerical staff recognize their customers very well because they deal with few customers), they might have recklessly entered the name that is known to them in all the 3 Loan A/c Master Data.  In this case the point to be considered is:

1.  Whether the loans availed have becomes NPAs in the books of bank thereby causing loss to the bank?

2. It is evident same person has availed 3 different loans using different surnames but same names, same ID cards etc.  Does the primary and collateral security taken for these loans cover all the three loan amounts sufficiently?  

Collusion of Branch Manager and borrower is very evident in this case, the bank must have brought it to the notice of their Audit and Vigilance department and initiated Disciplinary proceedings against the Branch Manager.