In a significant move, the Jammu and Kashmir government Thursday brought the Jammu and Kashmir Bank Limited under the purview of the Right to Information (RTI) Act, Central Vigilance Commission (CVC) and State Legislature.
The government approved a proposal by the State Administrative Council headed by Governor Satya Pal Malik to treat J&K Bank Limited as a Public Sector Undertaking (PSU). It approved that provisions of Jammu and Kashmir RTI Act 2009 shall be applicable to the Bank like other PSUs and it shall follow CVC guidelines.
The Bank shall also be accountable to the State Legislature like other State PSUs and its annual report shall be placed before the latter through State’s Finance Department, an official release said. The Finance Department will issue appropriate directions to the bank for observance, it added.
Established in 1938, the J&K Bank is the only state-promoted bank in the country, with 59.3 per cent shareholdings in it. As the state is a major shareholder in it, a need was felt that it should have the character of a PSU which is subject to general supervision and access for enhanced transparency in transaction of its business to promote public trust, the release said, adding that purpose of the SAC decision is not to question its day to day management, but a step towards strengthening better corporate governance.