Excelsior Correspondent
JAMMU, Jan 11: Giving relief to traders and industrialists who have their bank accounts with it, Jammu and Kashmir bank has amended its earlier decision regarding deduction of commitment charges from borrower’s account who are using less exposures given to them.
In its fresh guidelines, J&K Bank has delinked commitment charges from sanctioned limit and instead linked these charges with drawing power calculated monthly in the accounts which will directly benefit the borrowers as the drawing power is set based on business requirement for the month and not the whole sanctioned limit .
The Bank has reversed the excess charges applied with effect from 01-07-2022 based on the revised guidelines and the structure has been revised to directly benefit the borrower.
Now, there shall not be any commitment charges for the fresh working capital accounts for the consecutive two quarters and subsequently, commitment charges have been linked with drawing power calculated monthly.
In its guidelines, the Bank has asked its account holders involved in cyclic activities like cold drink business, ice cream, juice, fruit trade and similar others to contact the Bank branches for need based seasonal facilities in order to avoid the minimum utilization criteria.
Meanwhile, Rahul Sahai, Chairman PHDCCI Jammu has expressed gratitude towards Baldev Prakash (CMD J&K Bank) for revaluating and amending the decision of imposing commitment charges to account holders of J&K Bank.
Recently, Rahul Sahai had highlighted the issue and urged the J&K Bank CMD to personally look into the issue and amend the decision of the Bank for deduction of commitment charges from borrower’s account.
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