Srinagar, Jan 12: Bringing respite to the traders, the authorities in Jammu & Kashmir Bank have decided to reduce the commitment charges substantially after the frequent appeals by the Valley traders and hoteliers over the issue.
A top official in J&K Bank told the news agency—Kashmir News Observer (KNO) that the commitment charges have been substantially reduced for the period nearly four years from 01 July, 2021-31 March, 2024.
Earlier, the traders had appealed to the concerned authorities to take some favourable steps with regard to the commitment charges on unutilized loan amount of the borrowers.
As per a document available with KNO, the commitment charges have now been reduced and the borrowers having a limit upto Rs 10 lakh will not be charged anything while the borrowers having a limit of above Rs 10 lakh and having average utilization less than 50% will be charged 0.25 % (per annum) of the average unutilized limit plus applicable GST, with quarterly application.
The document further revealed that the borrowers having an average utilization of 50% to 70%, will be charged 0.10% (per annum) of the average unutilized limit plus applicable GST, with quarterly application.
for ascertaining the same. In case of any anomaly, the branch shall reverse the excess charges after obtaining approval from the concerned Zonal Head.”
It said that the newly opened accounts shall be exempted from charges application for 02 full quarters, excluding the quarter they are opened in.
It said that the commitment charges shall be computed and applied on the basis of drawing power fed in the CBS and not on the basis of limit sanctioned. “In case of facilities granted for cyclic activities (Cold drink/ ice cream/ juice/ fruit trading or likewise), the operative levels shall educate such borrowers to apply for need based peak season and lean season sanction limits as per their requirement,” it added—(KNO)
