Yaseen Khan seeks intervention of CMD J&K Bank

Srinagar: While criticizing the decision of J&K Bank for the deduction of commitment charges from borrowers’ accounts, Kashmir Economic Alliance (KEA) on Wednesday appealed to CMD J&K Bank Baldev Prakash to personally intervene in the matter saying this has created immense displeasure amongst the borrowers. The fresh plea from Kashmir traders comes when J&K Bank in its first started deducting charges on unutilized loan amounts of the borrowers which is called commitment charges that have caused mental agony among the traders.
KEA chairman Mohammad Yaseen Khan in a statement issued here said, “On one hand, it was encouraging that in the last few quarters, the bank has shown growth when other such financial institutions have been witnessing a fall in their assets across south Asian region. At a time when we appreciate our bank, in contrast, J&K Bank is deducting charges on one pretext or another which we fail to understand. We are not asking for any relief, soft loans, or concessions but deducting unnecessary charges is very depressing and unacceptable.”
“Now that the Bank is in a stable position, it needs to play its role in providing solutions for the revival of the economy of the UT which has always been deeply connected to and supported by the stakeholders like the business community hence becomes imperative upon J&K Bank to stop debiting charges of this nature otherwise we will be forced to look for other lending options from other financial institutions of the country,” Khan observed.
Khan who also heads Kashmir Traders & Manufacturers Federation (KTMF) said, “Levying of commitment charges was not mandatory upon the financial institutions but discretionary, and it was left to the discretion of the bank to charge or not to charge it. We have not seen it in the past as this has come as a shocker as many borrowers have received deductions worth lacs of rupees.
“In the midst of severe economic crisis faced by the business community, such types of harsh decisions shall prove detrimental to the already stressed businesses. As the premiere financial institution, we urge J&K Bank to ensure its rollback and keep the customer relation maintained.

KR Desk