Having defied the earlier orders of Governor Satya Pal Malik, the J&K Bank, after sacking of its controversial chairman cum managing director Pervez Ahmad, has finally demolished the iron screen around the financial institution and brought it under the RTI Act to introduce transparency and accountability that was so far lacking.

The Bank, after a meeting of its board of directors on Saturday evening, announced; “J&K Bank implements RTI and CVC guidelines for better governance and strong accountability framework”.

Although the Bank’s total business as on the close of 31 March 2019 touched Rs 1, 61, 864 crore comprising of deposits of Rs 89, 638 crore and gross advance of Rs 72, 226 crore but the management so far continued to defy the 22 November 2018 orders of the Governor led State Administrative Council of treating the Bank as a Public Sector Undertaking.

The issue of bringing the Bank under the RTI Act was raised from time to time by several members of the legislature but the successive state governments and management of the Bank did not budge. The Bank is facing allegations of having bent rules to sanction huge amounts of loans to influential people and irregularities in the recruitment process.

It was also being alleged that the Bank had virtually turned Kashmir-centric in advancing loans and assistance to horticulturists and farmers of the valley and providing step-motherly treatment to this sector in the Jammu division. The Reserve Bank of India had from time to time raised objections on the functioning of the Bank.

The recent recruitment process, wherein different cut-off percentage of marks was prescribed for Jammu, Kashmir and Ladakh regions had led to levelling of serious allegations against Pervez Ahmad.

The board of directors of the bank that held its first meeting under the interim chairman RK Chibber took the major decision of implementing the RTI Act and CVC guidelines with effect from 17 June. It was also decided to initiate action against wilful defaulters and strengthen the monitoring system.

The J&K Bank was incorporated on 1 October 1938 on the initiative of the then Dogra ruler Maharaja Hari Singh. The Maharaja had invited eminent investors to become the founding directors and shareholders of the bank.

The most notable of whom were Pandit Sriniwas Magotra, Abdul Aziz Mantoo, Peston Jee and the Bhaghat Family, all of whom acquired major shareholdings.

As of now, the state government owns 59 per cent Bank’s shares.

In order to boost the digital vision of the bank, the board has directed strengthening of the technological framework that includes migration of its core banking solution to Finacle 10 and further strengthening the early warning and alert generation systems.