Srinagar: Kashmir Traders and Manufacturers Federation (KTMF) Monday said that Jammu and Kashmir bank is not adhering to Reserve Bank of India (RBI) guidelines, saying that it has deducted the EMIs from the accounts of loan borrowers.
In a statement issued to wire service—Kashmir News Observer (KNO), the KTMF termed it as ‘highly unfortunate’. “RBI has clearly asked banks to put on hold EMI payments on all term loans including personal, home, education and other loans for three months and cut interest rate falling due from March 1, 2020 to May 31, 2020,” KTMF said.
“There is no justification for the deduction of EMI’s,” said KTMF acting President Manzoor Ahmad Bhat. “The borrowers in J&K had got a reason to smile as RBI had directed all banks including Jammu and Kashmir Bank not deduct EMIs on all loans for the next three months considering the ongoing coronavirus pandemic that has rattled the entire globe but on contrast J&K Bank is adopting a different yardstick”, he said.
“We got various calls since morning from traders about the deduction of EMI’s from their accounts. On enquiring from higher ups in the bank, they said that borrower should give in writing about non deduction of monthly instalments and its deferment. How is it possible for thousands of borrowers to go to the bank as we are under strict lockdown since last 10 days and maintaining social distancing”, he said. Bhat said, “It is impressed upon J&K Bank to reverse the deductions made today and not to cause inconvenience to the traders in these testing times. We also hope that CMD J&K Bank will abide by its word of implementation of RBI guidelines in J&K.