Separate Chairman, MD Posts at J&K Bank to Ensure Checks and Balances: Governor Administration
Financial institution could not function as an employment agency
Srinagar, June 12, KNT: The Governor’s administration on Wednesday announced the separation of the Chairman and Managing Director posts at Jammu and Kashmir Bank to introduce institutional checks and balances, asserting that recent actions concerning the bank were taken following concerns raised by the Reserve Bank of India.
Addressing a press conference in Srinagar, Jammu and Kashmir Governor Satya Pal Malik said the administration did not act independently but responded to a communication from the RBI that flagged alleged mismanagement within the bank. “We did not act against J&K Bank on our own. RBI wrote to us expressing concern. We have zero tolerance for corruption,” he said.
He was accompanied by the Chief Secretary B V R Subrahmanyam, who questioned certain operational practices of the bank. Subrahmanyam stated that a financial institution could not function as an employment agency and must adhere strictly to its core banking responsibilities.
“It is not the job of the bank to provide jobs. Its primary responsibility is to safeguard public money,” he said, adding that the bank had deviated from its fundamental objectives.
The Chief Secretary also raised concerns over reported Corporate Social Responsibility spending, questioning the allocation of substantial funds towards a golf course project. He argued that such expenditures did not reflect broad public benefit and required scrutiny.
Responding to queries regarding the applicability of the Right to Information Act to the bank, Subrahmanyam said the matter would be decided by the bank’s Board, noting that certain financial matters require confidentiality.
Announcing structural reforms, he confirmed that the roles of Chairman and Managing Director would be separated to strengthen oversight mechanisms. “Every institution requires checks and balances. The same principle will apply to J&K Bank,” he said.
Despite the criticism, the administration described the bank as a vital financial asset of Jammu and Kashmir and expressed confidence that it would regain stability within three months. [KNT]
