‘Benefits to include low-interest loan, free debit card, free locker, zero balance account’
SRINAGAR: Government on Wednesday signed a memorandum of understanding (MoU) with J&K Bank facilitating categorisation of state government employees as bank’s preferential clients entitled to slew of benefits under various banking facilities.
The MoU was signed by Principal Secretary Finance, Navin Kumar Choudhary on behalf of J&K Government and Chairman and CEO J&K Bank, Parvez Ahmad.
Speaking on the occasion, Navin termed the MoU as a significant arrangement which will further strengthen the relationship between the state and the bank.
“J&K Bank is a unique financial institution. It is the only bank in the country where the state government is a shareholder. Not only state government but all government employees are its shareholders,” he said.
Navin said government will provide updated and verified data from its Centralized Personalized Information System (CPIS) about all the employees to the bank, which will help the later to provide various facilities to the employees at ease and without need of further verification.
The Principal Secretary Finance appreciated the J&K Bank for its “outstanding performance” and being the “first and only listed large company” in the state. “J&K Bank is far ahead of other financial institutions when it comes to Credit Deposit Ratio which stands at 74% as against below 50% ratio of other banks operating in the state,” he said.
Navin Choudhary called on the bank to further upgrade its facilities in line with world class banking. He asked the bank to resolve the issue of non-working of JK Bank card on various online platforms so that people derive all facilities from the bank cards.
Giving details of the MoU, Chairman J&K Bank said, “Around 4.5 lakh state government employees comprise bank’s largest client base and the latest arrangement will further strengthen the bonds between the two institutions.”
He said the secretariat employees will receive discount of 75 percentage basis point and other state government employees will get discount of 50 percentage point while availing loans from the bank.
“Furthermore, after applying for loan facility via Bank’s App or on phone, the loan will be credited to beneficiary account in as little as two hours’ time. The employees don’t even need to visit any branch of the bank and all loan processing charges will be waived off,” Parvez said. “There will be no fee for opening of bank account. The facilities include maintaining zero balance account, free debit card, free online banking, concession on transaction fee, and enhanced ATM usage etc. The employees will also get discounted locker facility ranging from zero fee to fifty percent discount.”
The J&K Bank Chairman said that “35 percent of bank’s state portfolio which amounts to around Rs 6000 crore comes from the government employees and the MoU is aimed at to derive mutual benefits and increase the portfolio size”.
He said the bank has already put a similar mechanism in place for J&K Police and has successfully increased the client base from 25000 to 45000 among the police department only.
“JK Bank is committed to the socio-economic development of the state and it believes in carrying its people ahead in the march of progress. When the people progress and state develops, the bank will automatically achieve newer heights,” the chairman said.
The meeting was attended by a number of officials and representatives of various departments and banks.