The Department of Financial Services under the Union Finance Ministry has issued a nationwide advisory to all 28 Regional Rural Banks (RRBs) on 29 May 2026, directing them to ensure responsive, compassionate, and transparent customer service — particularly for rural, tribal, and vulnerable communities. The directive follows the widely condemned Keonjhar incident in which tribal man Jitu Munda carried the skeletal remains of his deceased sister to an Odisha Grameen Bank (OGB) branch in Malliposi to claim her deposit.

The Incident That Triggered the Reforms

On 27 April 2026, Jitu Munda arrived at the Malliposi branch of Odisha Grameen Bank in Keonjhar district carrying the exhumed skeletal remains of his sister, Kalara Munda. He had reportedly exhumed the body after bank officials asked him to produce a death certificate and legal heir documents to process the death claim on her account. The incident sparked nationwide outrage on social media and drew sharp criticism from opposition parties, who demanded immediate reforms in rural banking practices.

According to the bank, the deceased depositor's account had no surviving nominee, making submission of prescribed documents — including a death certificate and legal heir details — a mandatory procedural requirement. Following intervention by the local administration, the necessary documents were issued and a claim amount of ₹19,402 was subsequently settled in favour of Jitu Munda and two legal heirs.

Government's Response and Political Backdrop

Leader of Opposition Naveen Patnaik, also president of the Biju Janata Dal (BJD), wrote to Union Finance Minister Nirmala Sitharaman on 2 May 2026, expressing anguish over the incident. In response, Union Minister of State for Finance Pankaj Chaudhary wrote to Patnaik confirming that the Department of Financial Services had taken serious note of the matter and had immediately examined it with Odisha Grameen Bank.

Chaudhary acknowledged that while strict adherence to prescribed banking procedures was essential, such procedures must be implemented with sensitivity, empathy, and effective communication — especially in rural and tribal settings.

Action Taken Against the Branch

The OGB suspended the Branch Manager of the Malliposi branch following the incident. The bank also issued an internal advisory to all field-level functionaries, directing them to ensure transparent, compassionate, and customer-friendly service delivery. This comes amid growing scrutiny of how rural banking institutions handle claims from marginalised communities who often lack ready access to documentation.

Nationwide Advisory to RRBs

Going beyond the immediate case, the Department of Financial Services issued a formal advisory on 29 May 2026 to all 28 RRBs across India, reinforcing citizen-centric service standards. The advisory specifically calls out the need for responsive and empathetic handling of customers from rural, tribal, and other vulnerable sections of society.

Notably, this is among the first instances where a single localised incident at a rural bank branch has prompted a nationwide systemic directive from the Union Finance Ministry. Whether the advisory translates into measurable change on the ground — particularly for claimants without nominees or formal documents — remains to be seen.