JK Bank ignore RBI circular, deducting EMI’s

the voice of kashmir

Villagers up in arms against JK Bank Manager in Aloosa, Says will write to RBI, Financial ministry if not transferred

Srinagar, May 12(KNB): Despite RBI Guidelines and direction of financial ministry, Jammu and Kashmir Bank continues to deduct the every month Installments (EMI’s) towards KCC loans, business loans and other various loans of a three-month moratorium amid outbreak of deadly Covid-19.

Many borrowers of J&K Bank in Aloosa village of north Kashmir’s Bandipora district alleged that the branch Manager deducted EMI’s throwing RBI moratorium to the winds despite a written complaint being registered by customers addressed to JK Bank Chairman against the Manager of said branch, but no action has been taken yet.

“I had taken a KCC Loan from J&K Bank Aloosa, the EMI was debited for the month of April from my account, tried to contact the bank manager, but got no response,” Borrower, a resident of Aloosa Bandipora said.

“If the lockdown continues, then I will have no money for upcoming Eid and even to buy essential items like milk and vegetables,” he further said.

“We have decided to write to the ministry of finance, RBI and will highlight the JK Bank “non-compliance,” said JK Bank Customer.

The customers however, demanding transfer or suspension of the Branch Manager said that they have filed a written complaint a few months ago in this regard but no action was taken against the Manager.

Meanwhile, The customers of JK bank Aloosa have already given written complaint against the Branch Manager Aloosa before three months in JK Bank Headquarters Srinagar but no action has been taken yet.

Pertinently, RBI Governor on March 27 said, “All commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies and micro-finance institutions) (lending institutions) are being permitted to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March 1, 2020.”

Moreover, the Department of Financial Services under the Ministry of Finance earlier has directed banks to pass on the benefits to the customers at the earliest and to ensure the message is communicated to all branches. (KNB)