SRINAGAR: Jammu and Kashmir Bank has enhanced the group personal accident insurance cover for permanent Jammu and Kashmir Government employees from Rs 25 lakh to Rs 1 crore under a five-year agreement signed with the government. Separately commissioning a new Currency Chest Building at its Regional Business Centre (RBC) in Jammu to strengthen cash distribution infrastructure.
The two developments mark the bank’s efforts to expand employee-focused banking benefits while strengthening the physical infrastructure supporting currency management and banking services across the Union Territory.
The Memorandum of Understanding (MoU) for customised banking services was signed in the presence of Financial Commissioner (Additional Chief Secretary), Finance Department, Shailendra Kumar and J&K Bank Managing Director and Chief Executive Officer Amitava Chatterjee.
Chief General Manager (Credit) Ashutosh Sareen signed on behalf of the bank, while Director General (Resources), Finance Department, Mohammad Yaqub Ittoo signed for the government. Senior officials of both institutions were present at the signing ceremony.
Under the agreement, permanent government employees will receive enhanced insurance protection, preferential credit facilities and a range of banking concessions. The group personal accident insurance cover has been raised from Rs 25 lakh to Rs 1 crore, while air accident insurance cover has been fixed at Rs 1.35 crore. The package also provides cover of Rs 75 lakh for permanent total disability and Rs 55 lakh for permanent partial disability.
Additional benefits include higher education assistance of Rs 8 lakh for a male child and Rs 10 lakh for a girl child following the insured employee’s death. Girl child marriage assistance of up to Rs 10 lakh and air ambulance cover of Rs 10 lakh are also included, subject to applicable terms and conditions.
The banking package provides zero-balance accounts, free international debit cards with spouse add-on cards and lifetime-free RuPay credit cards. Eligible employees will also receive a concession of 25 basis points on applicable personal loan interest rates, subject to the prescribed benchmark floor.
The bank has waived processing fees on personal, automobile, housing and education loans for permanent government employees. Other facilities include overdrafts of up to Rs 6 lakh, subject to a maximum of six months’ salary; collateral-free education loans of up to Rs 10 lakh for their children; and 100 per cent financing for new cars and two-wheelers.
Employees will also be eligible for housing repair and renovation loans of up to Rs 10 lakh without a property mortgage, against a negative lien, subject to the applicable eligibility criteria and scheme conditions.
Kumar said the financial security of government employees and their families remained a priority for the administration, adding that the agreement offered meaningful benefits through enhanced insurance protection, preferential credit and convenient banking services.
“The substantial increase in accident cover provides a stronger financial safeguard for families in difficult circumstances,” he said, expressing hope that the agreement would be implemented effectively to ensure employees received the intended benefits.
Chatterjee said the bank’s relationship with the government was built on trust and a shared commitment to serving people. The agreement, he said, strengthened that partnership by addressing employees’ financial needs and providing greater security for their families.
In a separate development, J&K Bank commissioned its Currency Chest Building at the Regional Business Centre in Jammu on Thursday, strengthening the infrastructure used for currency management and cash distribution in the region.
Reserve Bank of India (RBI) Regional Director Prabhakar Jha and Chatterjee jointly commissioned the facility in the presence of RBI Deputy General Managers Ram Sarup and Vinod Kumar, the bank’s General Manager and Divisional Head (Jammu) Ashok Gupta, Deputy General Manager Anup Bhat and Zonal Head Chandrika Parihar.
The currency chest is expected to support the cash requirements of the bank’s branches as well as those of other banks aligned with the facility, helping ensure the availability of currency for households, traders and businesses.
Chatterjee said the investment in currency management infrastructure was aimed at improving customer convenience and strengthening the bank’s capacity to meet cash requirements across the region.
“Even as we expand digital banking, dependable access to cash remains essential for many customers and local economic activities,” he said, adding that the bank would continue to strengthen both digital services and physical infrastructure.
Jha said currency chests played an important role in ensuring the availability of banknotes and coins and facilitating the withdrawal of soiled notes from circulation.
He emphasised the need for sound operational controls, adherence to prescribed procedures and close coordination among banks to ensure secure and efficient currency distribution.
The commissioning of the facility underscores the continued importance of physical banking infrastructure alongside digital services, particularly in supporting routine cash transactions and the requirements of businesses and households across Jammu and Kashmir.
