(Overdraft facility for govt. employees)

I am a salaried person working in one of the government departments. I get my salary through one of the J&K Bank branches. Isn’t there any mechanism to get a part of my salary as loan from the bank which can be repaid when my salary is credited to my account?
(Sheikh Javeed Ahmad, Srinagar)

You are asking about overdraft facility against your salary. Even as the facility was not there a few days ago, J&K Bank has announced temporary overdraft facility in salary accounts. This is in addition to other loan facilities
like personal consumption loan, consumer loan etc. Based on the average quarterly balance (AQB), the bank has categorized the savings bank salary accounts of all government employees into general salary accounts and deluxe salary accounts. Those accounts with Rs.5,000 AQB will get temporary overdraft (ToD) facility equivalent to the 50 per cent of his or her net salary, but to the maximum of Rs.20,000. While as, the employees having general salary account with average quarterly balance less than Rs.5,000 is entitled to loan facility of Rs.10,000 or 50 per cent of the net salary, whichever is lower. The overdraft has to be necessarily
adjusted in one month and the bank shall charge a rate of interest of 12.75%.
So you can approach your branch where you maintain your salary account and fill in an application form. Overdraft facility will be allowed only after ascertaining that your salary has been credited regularly in the account for at least immediate three preceding months. It is notable that no document
other than the completed ‘Overdraft Application Form’ is required to be submitted for this overdraft facility. After submitting the application form, the overdraft facility shall be granted instantly. It is a sort of on-the-spot finance facility.

(ATM limit hike)

Banks are contemplating to hike the withdrawing limit to Rs.1 lakh a day through debit cards. I am a JK Bank Global Access cardholder. Currently, I am able to withdraw Rs.20,000 per day through ATMs. When are we expecting hike in the withdrawing limit.
 (Qazi Mohammad Ismail, Anantnag)

It is true that the banks are contemplating to hike the cash withdrawing limit in a day through ATM/debit cards. J&K Bank has announced the hike in cash withdrawing limit and purchasing limit in a day through its Debit Card (Global Access Card). Depending on the average quarterly balance, the bank has categorized the savings bank accounts into general and deluxe categories. The account holders in deluxe category (those S/B accounts maintaining average quarterly balance of Rs.5,000) shall be able to withdraw Rs.50,000 in a day through ATMs. They can even make purchases through their debit cards to the tune of Rs. One lakh in a day. For general category, the cash withdrawing limit shall continue to be Rs.20,000 and purchasing through PoS shall be Rs.50,000 in a day. The debit card of deluxe savings bank account holders shall be called now Gold Debit card.So, you should contact your branch and avail the facility.

(The views are of the author & not the institution he works for)
Readers can send their queries to
sajjadbazaz@gmail.com, sajjadbazaz@greaterkashmir.com)

Lastupdate on : Sun, 10 Oct 2010 21:30:00 Makkah time
Lastupdate on : Sun, 10 Oct 2010 18:30:00 GMT
Lastupdate on : Mon, 11 Oct 2010 00:00:00 IST