Exclusive: Preferential Loan Sanctions Raise Questions in Jammu and Kashmir Grameen Bank
A whistleblower alleges misuse of the Kisan Credit Card scheme in Jammu and Kashmir Grameen Bank to benefit a bank officer’s family. The complaint demands an impartial probe into branch-level irregularities.
Author: Saurav Kumar
Published: May 28, 2025
A complaint has surfaced within Jammu and Kashmir Grameen Bank alleging preferential treatment and irregular loan disbursements under the Kisan Credit Card (KCC) Animal Husbandry scheme. The whistleblower claims that two senior officials facilitated financial assistance to close family members in violation of standard banking norms and due diligence protocols.
Loans Granted to Non-Eligible Family Members
The complaint highlights that the parents of a Scale IV officer, residing in urban areas and with no history of agricultural activity, were granted loans under the KCC Animal Husbandry scheme—intended exclusively for farmers. The loans were sanctioned by two separate branches located in different districts. Despite the parents exceeding the permissible age and not fulfilling eligibility criteria, their applications were reportedly approved and processed swiftly.
Further, both sanctioned loan accounts were closed at the Kanhal and Akhnoor branches and reissued under a new loan account number from another branch—raising suspicion of deliberate manipulation. Notably, the branch heads involved at both locations were allegedly known to be closely associated with the said officer.
Calls for Investigation and Accountability
According to established rules, prior approval is mandatory before issuing loans to family members of senior bank officials. The complainant questions whether such permission was sought or granted in these cases. Moreover, the use of a scheme reserved for agricultural purposes in an urban context is being viewed as a possible misappropriation of public funds.
The complaint also notes that when the bank initiated inquiries in other cases involving minor due diligence lapses, concerned officials were suspended or terminated. However, in the present case, despite significant policy violations, no action has been taken—suggesting selective enforcement and internal bias.
The whistleblower has urged higher authorities to initiate a thorough investigation and prevent misuse of government-backed agricultural credit schemes, stating that the integrity of the institution is at stake. The alleged irregularities not only undermine public trust but also put an avoidable burden on the public exchequer.
The matter is now under the spotlight as calls for transparency and accountability grow louder within the banking fraternity.
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