SRINAGAR: Just days ahead of Eid-ul-Adha, government employees across Jammu and Kashmir are facing unexpected financial distress as their salaries are being drained by double EMI deductions from J&K Bank accounts, leaving many with zero or even negative balances.
The issue, which reportedly occurred in both May and June, has triggered panic and outrage among employees who depend on their monthly salaries for essential expenses, especially during festive periods.
“I checked my salary account hoping to buy sacrificial meat and new clothes for my children,” said Abdul Rasheed, a school teacher from Baramulla. “But the balance was just ₹76. I thought it was a mistake. Then I saw two EMI deductions for the same loan. I just broke down.”
Employees say the repeated deductions have disrupted their financial planning and forced them to borrow money to meet basic needs during the holy festival.
“How are we supposed to celebrate Eid with empty accounts?” asked Farah Jan, a nurse at a government hospital in Anantnag. “I work night shifts, take care of patients, and this is what I get? Even the banks are stealing our peace now.”
Many account holders allege that the bank’s digital systems failed to prevent duplicate EMI withdrawals. While some were able to lodge complaints at their local branches, others claim they were either turned away or asked to “wait and watch.”
“This is not a technical glitch—it’s negligence,” said Mohammad Yousuf, a Revenue Department employee. “It has happened two months in a row. What if my rent cheque bounces now? Who will answer for this?”
The crisis has led to calls for intervention from the Reserve Bank of India (RBI), with some employee unions even exploring legal options, including filing a Public Interest Litigation (PIL).
Meanwhile, a delegation from the Shrine Board Employees Union today met with the Chief Executive Officer (CEO) of the Shrine Board to express serious concerns over irregularities in loan installment deductions by J&K bank.
During the meeting, the employees alleged that Equated Monthly Installments (EMIs) for loans are being deducted twice in a single month, causing undue financial burden and stress among the staff.
The delegation emphasized that such discrepancies are not only affecting their financial planning but also eroding trust in the banking system tied to their salaries. Highlighting the gravity of the issue, the Union appealed to the Shrine Board administration to take immediate corrective action.
They further urged that if the concerned J&K bank fails to rectify the situation and improve customer service standards, the Board should explore options to shift salary accounts to another bank offering more reliable services and lower interest rates on loans. In response, the CEO gave a patient hearing to the grievances and assured the employees that their concerns will be taken seriously.
He emphasized that the welfare of Shrine Board employees is of paramount importance and affirmed that employees will soon be given the option to transfer their salary accounts to a bank of their choice, ensuring greater flexibility and improved service experience.
On May 4, 2025, J&K Bank issued a clarification regarding the recent controversy over the preponement of EMI deductions, which had triggered widespread concern among customers, especially government employees.
In its statement, the bank acknowledged that news of the early EMI deduction under one of its loan schemes had gained attention on social media. It explained that, effective May 2025, the EMI due date had been revised from the end of the month to the 3rd, with the intention of helping customers maintain a healthy credit history and safeguard their CIBIL scores.
The bank admitted that the change may have disrupted some customers’ monthly budget planning and assured that the matter was addressed. It also said that SMS notifications had been sent to all concerned customers and reaffirmed its commitment to their financial stability and well-being.
