CBI probes bank manager for pocketing funds meant for farmers

The officer had fraudulently transferred funds meant for farmers by reversion of three per cent interest in gold loans for agriculture if they promptly make repayment, to his wife’s account using his subordinate’s banking passwords.

CBI has cited Y Kiran Babu, the then branch manager of SBI, Alangudi branch in Pudukottai, and his wife K Nishiba as accused in the fraud case. A case under IPC sections of criminal conspiracy, criminal breach of trust, cheating, criminal misconduct and fraudulent use of password along with Prevention of Corruption Act was registered by Madurai CBI unit against the two based on a complaint from SBI’s regionalbusiness office.

The fraud came to light during the course of annual closing in March 2018. An unusually huge amount of agricultural interest subvention accounts did not match with the gold loan accounts with gold loan outstandings. According to the Union Government scheme, the gold loan borrowers who repay the loan amount within the stipulated period of one year stand to get reversion of three per cent interest to adjust the loan. This is offered as an incentive to encourage agricultural lending through gold loans. This benefit will be extended to borrowers by crediting to their savings bank account.

Kiran Babu allegedly misused his assistant manager’s core banking IDs for making unauthorised transactions. A sum of Rs 4.94 crore of unauthorised debits were entered by Kiran Babu from the branch’s BGL account (branch internal transaction account) number during the said period. This amount was credited in his wife Nishiba’s account.

Two BGL accounts of the bank has made several money transfers to the account of Nishiba. In all, the CBI said, Rs 4.9 crore has been transferred to Nishiba’s account from the bank accounts.