Governor’s move to bring J&K Bank under PSU sparks autonomy row

SRINAGAR :The decision of governor Satya Pal Malik to treat Jammu and Kashmir Bank as a public sector undertaking (PSU) has created an uproar in the restive state with political parties and civil society accusing the governor of trampling the autonomy of the institute and fiddling with special status of the state.

The state administrative council (SAC) under the chairmanship of Malik approved the proposal for treating Jammu and Kashmir Bank Limited as a public sector undertaking (PSU) on Thursday.

A statement by government said that the bank shall be accountable to the state legislature like other state PSUs. The annual report of the J&K Bank Ltd shall be placed before the state legislature through state’s finance department.

The SAC approved that the provisions of the Jammu and Kashmir Right to Information Act, 2009, shall be applicable to the bank like other PSUs besides it shall follow CVC guidelines.

“As the state is a major shareholder in the J&K Bank Ltd, a need was felt that it should have a character of a PSU which is subject to general supervision and access for enhanced transparency in the transaction of its business to promote public trust,” the statement said.

Established in 1938, the financial institute is the only stategovernment promoted bank in the country with a current shareholding of 59.3% with J&K government. Until now, it was supervised by the RBI and classified as old generation private sector bank. It has a board of directors as its governing body with members from government, RBI and independent experts. It is also subject to oversight by the comptroller and Auditor General of India.

PDP CHIEF DEMANDS ROLLBACK

Former chief minister and the Peoples’ Democratic Party leader Mehbooba Mufti demanded immediate rollback of the decision saying such decisions smack off attempts to fiddle with the basic character of the state’s special status.

Mufti said that there are assaults on multiple fronts being launched against Jammu and Kashmir’s special status and the governor administration is taking away autonomy of institutions that J&K enjoyed.

“J&K Bank is part of this game plan… Such actions raise apprehensions among the people of the state who already feel alienated and angry,” she said.

NO INTENTION OF INTERFERING IN DAY-TO-DAY AFFAIRS OF THE BANK

The governor’s administration on Saturday evening issued a statement saying that the government has no intention of interfering in the day-to-day affairs of the J&K Bank and the Bank’s functional autonomy with its board of directors as supreme decision-making body remains unquestioned and the bank will continue to be regulated by the RBI.

It said the latest decision taken by the SAC is only aimed at promoting good governance and transparency in the functioning of the Bank.