J&K Bank, Government Sign MoU to Enhance Banking Benefits for Employees; Accident Insurance Cover Raised to Rs 1 Crore , Five-year agreement offers enhanced insurance protection, concessional loans, zero-balance accounts and other preferential banking facilities
Srinagar, October 23: Jammu and Kashmir Bank has signed a Memorandum of Understanding (MoU) with the Government of Jammu and Kashmir to provide customised, convenient and personalised banking services to permanent government employees, strengthening its position as the government’s preferred banker.
The five-year agreement aims to enhance the financial security of employees and their families through improved insurance coverage, preferential credit facilities and a range of banking benefits.The MoU was signed in the presence of Financial Commissioner (Additional Chief Secretary), Finance Department, Shailendra Kumar (IAS), and J&K Bank Managing Director and CEO Amitava Chatterjee.
Chief General Manager (Credit) Ashutosh Sareen signed the agreement on behalf of J&K Bank, while Director General (Resources), Finance Department, Mohammad Yaqub Ittoo, signed on behalf of the government. Senior officials from the bank and the Finance Department were also present.
Speaking on the occasion, Shailendra Kumar said the welfare of government employees and the financial security of their families remained a priority for the government. He said the agreement would provide meaningful benefits through enhanced insurance protection, preferential credit facilities and convenient banking services.
He added that the substantial increase in accident insurance coverage would offer stronger financial protection to families in difficult circumstances and emphasised the importance of effective implementation to ensure that employees received the intended benefits.
Amitava Chatterjee said the bank’s longstanding relationship with the J&K Government was built on mutual trust and a shared commitment to public service. He said the agreement would further strengthen the partnership by addressing the financial needs of government employees through enhanced insurance coverage, customised banking services and preferential credit facilities.
A major feature of the agreement is the enhancement of Group Personal Accident Insurance cover from ₹25 lakh to ₹1 crore. The package also includes air accident insurance coverage of ₹1.35 crore, permanent total disability cover of ₹75 lakh and permanent partial disability cover of ₹55 lakh.
Additional benefits include financial assistance for children’s higher education following the insured employee’s death, with coverage of up to ₹8 lakh for a male child and ₹10 lakh for a girl child. The package also provides girl child marriage cover of up to ₹10 lakh and air ambulance coverage of ₹10 lakh, subject to applicable terms and conditions.
Under the banking package, eligible employees will receive zero-balance accounts, free international debit cards, add-on cards for spouses and lifetime-free RuPay credit cards. A concession of 25 basis points on applicable personal loan interest rates will also be available, subject to the prescribed benchmark floor.
The agreement further provides for a waiver of processing fees on personal, automobile, housing and education loans for permanent government employees.
Eligible employees can also avail themselves of overdraft facilities of up to ₹6 lakh, subject to a maximum of six months’ salary, and collateral-free education loans of up to ₹10 lakh for their children. The package includes 100 per cent financing for new cars and two-wheelers, along with housing repair and renovation loans of up to ₹10 lakh without a property mortgage, against a negative lien.
All credit facilities and insurance benefits will be governed by the applicable eligibility criteria, scheme provisions and terms and conditions. ANB
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