Srinagar, Feb 17 (KNS): Extending a gesture of great relief towards its borrowers, the J&K Bank reversed its ‘commitment charges’ which were applicable in case of working capital facilities.
The decision is widely being hailed by traders, businessmen and other stakeholders who have expressed gratitude to J&K Bank authorities particularly its chairman Baldev Prakash.
“The decision to reverse commitment is appreciable from the Bank authorities. We welcome the decision of reduction in charges”, Mushtaq Ahmad Chaya, Chairman Jammu and Kashmir Hoteliers Club told KNS.
He said interest should be charged only on availed services. “If money is with the bank and not used by the customer, ideally there should be no service charges”, he said.
Chairman, Kashmir Traders and Manufacturers Association (KTMF) Mohammad Yaseen Khan said though the decision is a good gesture but only 90% charges were reversed so far. “The rest of amount debited from customers is yet to be returned back which we hope will soon be taken care of", Khan said.
He welcomed the decision and added “Besides there are other issues as well which need to be considered sympathetically by the bank authorities in favor of business community”.
Another senior businessman while speaking to KNS said the bank's decision to roll back the earlier direction after stakeholders requested for it is a customer-friendly gesture and a welcome development .
He said the commitment charges were imposed at a time when stakeholders are trying hard to meet their daily ends. “The financial position is already worse. However good senses prevailed and the authorities rolled back the decision which is a welcome step”, he said.
Vice President, Traders Federation Magam, Gh Mohi ud Din Khan welcomed the decision. "We welcome this people and business centric approach of MD & CEO J&K Bank Baldev Prakash and thank him and other authorities for always being there to support business community," he said.
Mohammad Aslam, a trader from Kupwara while expressing gratitude told," The reversal of commitment charges SMS brought a broad smile on my face and I was so happy when I got the money back."
Notably, J&K Bank has also reduced these commitment charges, deduction of which is an industry-wide norm and are being charged on the sanctioned limits not availed by borrowers up to threshold levels. Bank has also requested it's borrowers to utilize the sanctioned limits to avoid such charges in future and ensure proper financial discipline.(KNS)