In a tragic incident in Jharkhand's Garhwa district, a tribal man named Ratan Lakra died after his family alleged that a rural bank's delay in completing the e-KYC process prevented him from accessing funds necessary for his medical treatment. The family carried Lakra's body into the bank, demanding accountability for the alleged delay. The bank, however, denied withholding the funds, stating that the e-KYC was completed, but no family member had come to withdraw the money. This incident has raised serious concerns about the accessibility of banking services in rural areas, especially during medical emergencies.
According to the family, Lakra had been receiving a government pension in his account at Jharkhand Gramin Bank, intended to cover his medical expenses. They claimed that the bank manager made them visit the branch repeatedly for nearly three months to complete the mandatory e-KYC process. Despite their efforts, they alleged that the bank continued to delay the release of funds, even after the e-KYC was completed. The family brought the bedridden patient to the bank to complete the formalities, but still faced delays in accessing the money.
"We kept running from pillar to post. Even after the e-KYC was completed, we were not given the money. Today he has died because he could not get treatment," family members alleged during the protest.
Bank officials disputed the family's account. Vikas Kumar, cashier at Jharkhand Gramin Bank, stated that the e-KYC process had been completed and there was no restriction on withdrawing money afterward. According to the bank, "The e-KYC had been completed, but after that no family member came to the bank to withdraw the money. That is why no amount was withdrawn. Today, after his death, they have come to the bank with the body."
The incident has sparked a broader debate about the challenges faced by rural communities in accessing banking services. While the Reserve Bank of India (RBI) has implemented digital KYC systems to streamline the verification process, the on-ground implementation varies widely. Many customers continue to face repeated KYC requests and are often required to visit branches in person, even when they are bedridden or unable to travel. This situation highlights the need for more inclusive banking practices that consider the diverse needs of the population.
In a similar incident in Odisha, a man was forced to bring his deceased sister's skeleton to a bank to prove her death and withdraw her savings. The bank initially denied the claim due to a lack of proper documentation, leading to public outrage and a subsequent investigation into the matter. These incidents underscore the systemic issues within the banking sector that need urgent attention to prevent such tragedies in the future.
The Garhwa incident has prompted calls for stricter regulations and oversight to ensure that banks adhere to customer-centric practices, especially in rural areas. It also highlights the importance of implementing digital solutions that are accessible and user-friendly for all segments of society, ensuring that essential services like healthcare are not compromised due to bureaucratic delays.
As the investigation into Lakra's death continues, it serves as a stark reminder of the critical need for efficient and compassionate banking services that prioritize the well-being of their customers, particularly in times of medical emergencies.