Rural Banking in Jammu and Kashmir : A Challenging Stride for J&K Grameen Bankers

On a summer morning, the Panzinara branch of Jammu and Kashmir Grameen Bank (JKGB) received only three visitors. Despite the presence of three staff members—a branch head, an assistant manager, and an office assistant—the branch was clearly struggling with a significant shortage of staff.

The Panzinara branch stands out due to its security setup, which includes a protective detail provided by security forces, effectively transforming this rural bank into a guarded outpost.

Image: Location of Jammu and Kashmir Grameen Bank, Panzinara Branch on the Srinagar-Bandipore highway

Interestingly, Panzinara is one of the few JKGB branches in Jammu and Kashmir, and perhaps the only one in India, to be surrounded by a cordon of Central Reserve Police Force (CRPF) personnel. A dedicated CRPF battalion encircling a small bank branch perched on the banks of the Jhelum River highlights the ongoing challenges faced by rural bankers and their customers in this sensitive region.

Image: A CRPF Cordon Vehicle in front of J&K Grameen Brach Panzinara Branch, Kashmir

Security Concerns in a Volatile Region

The Panzinara branch is strategically located near the Srinagar-Bandipore highway, which leads to the Kupwara district of Kashmir, a region often under surveillance due to suspected militant activity. Just a kilometer from the branch lies Mujgund, an area considered sensitive by security forces.

A CRPF officer stationed in the region recounted, “An official of the Ellaquai Dehati Bank (EDB) was killed in broad daylight near the branch head in June 2022. The murder sent shockwaves through the community, especially among the banking staff. Recognizing the sensitivity of the area, JKGB management requested security cover for the Panzinara branch.”

At the entrance of Jammu and Kashmir Grameen Bank’s Panzinara branch, a CRPF personnel stands guard with his rifle against the serene yet tense landscape. This silent sentinel symbolises the heightened security measures in place due to the region’s vulnerability that necessitates such protection, reflecting the underlying threats faced daily by the bank’s employees.

A bank official shared with Kanal, “It’s unusual for a JKGB branch to operate under CRPF protection, but this underscores the harsh reality of the security challenges bankers face here. The broad daylight attacks on rural bankers in 2022 have intensified the risks, making even routine banking operations a matter of constant vigilance.”

Image: A CRPF Personnel Guarding the entrance of JKGB Panzinara Branch  

Gramin Banker Under Threat

In June 2022, the brutal killing of Vijay Kumar, an Ellaquai Dehati Bank (EDB) officer in Kulgam district, sent ripples of anger and fear through the banking community. Just a few months later, in October 2022, Vivek Kumar, the branch head of JKGB, narrowly escaped death after being attacked by unidentified militants.

In response to the escalating violence against bankers, the All India Regional Rural Bank Employees Association (AIRRBEA) voiced its deep concern, calling for immediate measures to protect staff members.

Image: AIRRBEA letter to JKGB Chairman on the attack on branch head

These security threats have exacerbated the challenges faced by JKGB, leading to rising employee attrition and deteriorating infrastructure across Jammu and Kashmir. The looming threat of militancy remains a key factor driving the exit of staff from the region.