Srinagar Jan 5 (KNS): The issue of levy commitment charges on the residual balance of loans and credit lines given to businesses was raised by the Kashmir Traders Alliance (KTA) on Thursday with the management of the Jammu and Kashmir Bank.
A delegation from the alliance met with J&K Bank's Ashutosh Sareen, general manager of credits, to discuss the imposition of commitment fees, according to a statement from KTA President Aijaz Shahdhar. According to Shahdhar, the meeting was held in a friendly environment, and J&K Bank representatives patiently listened to the trader group's concerns about the commitment charges. However, J&K Bank executives stated they couldn't put off the decision to impose commitment fees; instead, they promised to make sure their institution would charge less than other banks operating in J&K.
Further, he said they were assured that for fresh accounts opened post-June, there will be no levying of commitment charges on unused loans for the first two quarters of the financial year. Fresh accounts will also not be charged any commitment rates for the first two quarters. (KNS)