Jammu and Kashmir Bank Employees have written a letter to the Prime Minister of India – Shri Narendra Modi, to shift the governance of the bank from the Ministry of Home Affairs to the Ministry of Finance. In India, all banks are regulated by the Ministry of Finance and operate under the supervision of the Reserve Bank of India (RBI). However, Jammu and Kashmir Bank Ltd. (J&K Bank) is an exception to this rule. Unlike other banks, J&K Bank is governed by the Ministry of Home Affairs, which sets it apart from the rest of the Indian banking system. All India Jammu and Kashmir Bank Officers Organization has written a letter to PM Modi regarding change of governance. Read below what union has said in its letter. Click here to Read more Banking News.
Challenges Due to Unique Governance
Because J&K Bank is governed by the Ministry of Home Affairs instead of the Ministry of Finance, many important policies and decisions made by the Department of Financial Services (DFS) are not directly applied to it. This often results in delayed compliance with new banking regulations. A recent example of this delay is the late implementation of the agreed-upon wage revision for officers, clerical, and subordinate staff of the bank.
The special treatment of J&K Bank has led to a feeling of alienation among its employees and stakeholders, as they feel disconnected from the broader Indian banking industry. This sense of separation has been further heightened by recent developments, such as the RBI’s recommendation to limit voting rights in J&K Bank to 26%, which surfaced last month.
To address these challenges, there is growing support for bringing J&K Bank under the governance of the Ministry of Finance, along with the direct application of RBI and DFS circulars. Such a change would align J&K Bank with other Indian banks, ensuring uniformity and inclusiveness across the industry. This shift would help J&K Bank work in unity with other banks from Kashmir to Kanyakumari, contributing to a cohesive and integrated Indian banking system. Click here to Read more Banking News.
Know about J&K Bank to understand better
Jammu and Kashmir Bank (J&K Bank) is a Scheduled Commercial Bank and one of the oldest private sector Bank in India, incorporated in 1938. Bank is listed on the NSE and the BSE and has its Corporate Headquarters at Srinagar. Bank functions as a leading bank in the Union Territories of Jammu & Kashmir and Ladakh and is designated by Reserve Bank of India as its exclusive agent for carrying out banking business for the Government of Jammu & Kashmir and Ladakh. Bank holds a major market share of 61.60% of banking business in UT of J&K and 54.92% in the UT of Ladakh as on June 30, 2023.
Government of Jammu & Kashmir & Ladakh holds majority shareholding of 59.40% in the Bank as on June 30, 2024. Bank has a network of 1001 branches and 1425 ATMs as on June 30, 2024 spread over 18 states and 4 UTs across the country. Out of 1001 Branches, 832 are operating in the UT of J&K, 37 in UT of Ladakh and 132 are operating outside the UTs of J&K and Ladakh. Besides, Bank has 96 Ultra Small Branches known as Easy Banking Units (EBUs) in UT of J&K and Ladakh.
So, what do you think about this..?? Should J&K Bank be controlled by Ministry of Finance or Ministry of Home Affairs – tell us in the comments section.
