Keonjhar (Odisha) 

Following a widely reported incident in Odisha's Keonjhar district, where a tribal man was seen carrying his sister's skeletal remains to a bank branch, the Indian Overseas Bank on Tuesday issued a clarification rejecting allegations that its staff demanded the physical presence of a deceased account holder for processing a withdrawal.

In its statement on social media platform X, the bank said the matter pertains to the Malliposi branch of its sponsored regional rural bank, Odisha Grameen Bank. It explained that Jitu Munda visited the branch seeking withdrawal from an account held in his sister's name. Officials informed him that third-party withdrawals are not permitted without proper authorisation, and that in the event of death, settlement requires submission of a valid death certificate and other supporting documents.

"We would like to address recent media reports regarding an incident at one of the branches of our sponsored Regional Rural Bank, Odisha Grameen Bank. The incident pertains to the Malliposi Branch, Patna Block, District Keonjhar, and occurred on 27.04.2026. Contrary to certain media reports, bank officials did not demand the physical presence of a deceased customer for withdrawal. The facts are being presented to ensure clarity and transparency regarding the incident," said the statement.

"An individual, Jitu Munda, visited the branch for the first time requesting withdrawal from an account held in his sister's name, Ms. Kalara Munda. As per banking regulations, third-party withdrawals are not permitted without proper authorization. Upon being informed, he stated that the account holder was deceased. Our Branch Manager clearly explained that in the event of death, settlement can only be processed upon submission of valid documents, including a death certificate," the statement added.

The bank further stated that the situation escalated when the individual allegedly returned in an inebriated condition and created a disturbance at the branch. It claimed he later brought what appeared to be human remains, reportedly the exhumed skeletal remains of his sister and placed them outside the branch while insisting on withdrawal from her account. Police were immediately informed and the matter was handled under their supervision.

"The individual who was in an inebriated condition became disruptive and later returned with human remains, reportedly exhumed after being buried a few days earlier, placing them in front of the branch and claiming it to be his sister while demanding withdrawal from her account. This created a highly distressing situation at the premises. Local police authorities were immediately informed, and the matter was handled under their supervision," said the statement.

The bank said the incident reflects a lack of awareness regarding claim settlement procedures and a refusal to accept the process explained by staff. It denied any allegations of harassment, stressing that its intent was to protect the account holder's funds. It also added that it is coordinating with local authorities for issuance of the death certificate, after which the claim will be processed on priority.

"The incident appears to have arisen due to a lack of awareness of the claim settlement process and the individual's unwillingness to accept the procedures explained by the Branch Manager. Bank's intention was to protect the interest of the poor tribal women monies in the account. There is no case of any harassment. The bank is also in continuous coordination with local authorities for issuance of the death certificate. The claim will be settled on priority once the death certificate is submitted," said the statement.

A tribal man in Odisha's Keonjhar district was reportedly seen carrying the skeletal remains of his deceased sister to a bank on April 27, in an attempt to withdraw money from her account, claiming to be her heir.

According to Sub-Collector Uma Shankar Dalai, the man was unaware of the required legal procedures and acted out of frustration. At first glance, officials noted that he is not a Class-I legal heir, which is why the bank had asked for documents he could not provide.

He said that the authorities are now assisting him in completing the formalities. He is expected to apply for the necessary documents, including the death certificate and legal heir certificate. Officials are also facilitating the early release of Rs 20,000 under Red Cross assistance and coordinating with the bank to ensure the funds are eventually transferred to the rightful legal heirs.

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"The tribal man was not aware of the procedural aspects. Out of frustration, he did this. Prima facie, it appears that since this man is not a class-I legal heir of his sister, the concerned bank rightly asked him for documents which he could not produce. Today, he will apply for the necessary documents. We are facilitating early processing of Red Cross Assistance of Rs 20,000, the death certificate and the legal heir certificate and release of the deposited money to the legal heirs in consultation with the bank," he said.