J&K Bank Chairman & Managing Director (CMD), R K Chhibber, has assured borrowers of the bank that there would be no EMI deduction for the months of March, April and May 2020 as of now. If any EMI has been deducted from the account that must have been already overdue from previous month or the same may have been deducted before the announcement by the Reserve Bank of India.
The CMD was responding to the reports of EMI deduction and charging of interest by the bank despite directions from the RBI
There have been reports that the bank has deducted EMIs in contravention to the directions of the RBI. Let me assure my valuable customers that the bank is bound to follow the directions of the regulator in letter and spirit,” he said.
“Being a premiere financial institution that is interwoven with social fabric of the UT, J&K Bank is willing to walk an extra mile for its valued customers”, the CMD said.
Remarkably, J&K Bank was quick to announce a slew of measures aimed to provide relief to its borrowers which include implementation of a 3-month moratorium on the repayment of installments of term loans and deferment of interest on working capital facilities outstanding as on March 1, 2020 also for three months, besides slashing the key lending rate by 75 basis points (0.75 percentage point) in line with the directions of the RBI.
Notably, the bank had earlier also announced that there would be no charges on debit card transactions on domestic ATMs, NEFT/RTGS transactions initiated on mPay or ebanking and on UPI transactions. Also, no charges would be levied on account of non-maintenance of minimum balance.