Commitment Charges Deduction Unacceptable, Demand Immediate Reversal: KEA To J&K Bank

SRINAGAR: While criticizing the decision of J&K Bank for deduction of commitment charges from borrowers account, Kashmir Economic Alliance(KEA) on Wednesday appealed CMD J&K Bank Baldev Prakash to personally intervene in the said matter as this has created an immense displeasure amongst the borrowers. The fresh plea from Kashmir traders comes when J&K Bank in its first have started deducting charges on un-utilised loan amount of the borrowers which is called as commitment charges that has caused mental agony among the traders.

Kashmir Economic Alliance(KEA) chairman Mohammad Yaseen Khan in a statement issued 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 while we appreciate our bank , on contrast J&K Bank is deducting charges on one pretext or other 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,” Khan said.

“Now that the Bank is in a stable position, it needs to play its role for providing solutions for revival of the economy of the UT which has always been deeply connected to and supported by the stake holders like 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 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 deduction 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 the J&K Bank to ensure its rollback and keep the customer relation maintained.

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