J&K Bank signs MoU with Jammu and Kashmir government, raises employee accident cover to Rs 1 crore

Jammu and Kashmir Bank has signed a five-year Memorandum of Understanding with the Jammu and Kashmir government to deliver enhanced financial protection and customised banking services to permanent government employees, quadrupling their group personal accident insurance cover to Rs 1 crore.

The agreement reinforces J&K Bank's role as the preferred financial institution for government personnel, expanding welfare provisions, insurance security, and concessional credit facilities across the Union Territory.

What the new employee agreement covers

The agreement was signed in Srinagar in the presence of Financial Commissioner Shailendra Kumar and J&K Bank Managing Director and Chief Executive Officer Amitava Chatterjee. Chief General Manager Ashutosh Sareen signed for the bank, while Director General Mohammad Yaqub Ittoo signed on behalf of the state administration.

Kumar said the welfare of government personnel and the financial security of their families remain a priority for the administration, noting that quadrupling the accident cover from Rs 25 lakh to Rs 1 crore provides essential financial safeguards in difficult circumstances.

The agreement sets out structured insurance coverage and family welfare assistances:

Concessional loans and zero-balance banking

Under the customised banking package, permanent employees will receive zero-balance salary accounts, lifetime-free RuPay credit cards, and free international debit cards with spouse add-on cards.

The bank has waived processing charges across personal, automobile, housing, and education loans. Employees will also receive a 25-basis-point interest rate concession on personal loans, subject to benchmark floor limits.

Additional credit facilities include overdrafts of up to Rs 6 lakh, collateral-free education loans of up to Rs 10 lakh for children, and 100 per cent financing for new motor vehicles. Employees can also access housing repair loans of up to Rs 10 lakh without a property mortgage, secured against a negative lien.

J&K Bank expands physical infrastructure in Jammu

In a parallel move to bolster financial infrastructure, J&K Bank commissioned a new Currency Chest Building at its Regional Business Centre in Jammu.

Reserve Bank of India Regional Director Prabhakar Jha and Chatterjee jointly inaugurated the facility in the presence of senior RBI and bank officials. The currency chest will support cash operations for the bank's own branch network and partner institutions across the region, ensuring reliable liquidity for local economic activities and businesses.

Jha noted that currency chests play a vital role in maintaining banknote quality and facilitating cash circulation, stressing that close inter-bank coordination ensures smooth distribution across Jammu and Kashmir.