IndusInd Bank's subsidiary disbursed loans to customers without consent

What if your bank approves a loan without asking you? You can hardly imagine when this money will come into your account once the loan is approved. But in reality, something similar has happened. In fact, IndusInd Bank, the country's largest bank, has acknowledged the fact that due to technical glitches, customers got loans without approval. 

According to the bank, the disbursement of microfinance loans through associates during the Corona crisis was due to a "technical error". An investigation by Deloitte audit firm has also revealed the facts. The bank has also set up a committee to evaluate the liability of its employees. This information was given to the stock market by IndusInd Bank. The case relates to allegations that Bharat Financial Inclusion Limited (BFIL), a subsidiary of IndusInd Bank, disbursed microfinance loans to customers between March 2020 and October 2021 without their approval. 

After receiving the complaint, the bank immediately took steps to conduct an internal audit and IT audit. Deloitte was then given the responsibility of investigating the fact audit company. The bank said Deloitte submitted its final report on March 7, 2022, and based on the findings and evaluations of the report, the bank's board of directors found that the loan disbursement to customers without approval was due to a technical error.