During the ZIC meeting, it was reported that a loan initially appeared to be disbursed in compliance with organizational policies. However, subsequent findings revealed irregularities, including an incorrect photo in the bank passbook linked to the account. As per audit, Borrower Ms. Damayanti Behera was unaware of the loan disbursement under her name. She had provided her KYC documents to a ringleader for loan processing, which was never completed. The ringleader later misused her KYC details to fraudulently secure loans from other financial institutions, create fake bank accounts, and forge documents (including Aadhaar cards). Original KYC documents of Ms. Behera were not retained by the branch. The alleged employee admitted to adding Ms. Behera as a member without obtaining center consent, relying solely on the ringleader’s approval, thereby violating GRT process policies. The ZDAC committee observed that the ringleader exploited Ms. Behera’s KYC documents to manipulate bank records and fabricate accounts.•	The Branch Manager’s failure to verify documentation or follow due process represents a serious procedural lapse.  Based on the facts and evidences, the committee further decided to make the employee Resign on immediate basis and terminate his duty with immediate effect.