India’s Competition Commission Clears J&K Bank in Antitrust Case

The Competition Commission of India (CCI) has rejected an antitrust complaint lodged against Jammu and Kashmir Bank (J&K Bank), concluding that the allegations lacked sufficient grounds to warrant further investigation.

According to a statement issued by the competition watchdog, the complaint accused the bank of forming anti-competitive agreements with government departments, educational institutions, and automobile manufacturers. However, the CCI found no prima facie evidence of any violation under the Competition Act, noting that such arrangements are a regular part of standard banking operations.

The original complaint had raised concerns that J&K Bank allegedly compelled employees of various government-linked organizations—including the Jammu & Kashmir government, University of Jammu, University of Kashmir, and the J&K Police—to open salary accounts exclusively with the bank. It was argued that this practice restricted employee choice and potentially hindered fair competition among financial institutions.

In addition, the complainant claimed that J&K Bank entered into financing partnerships with prominent vehicle manufacturers such as Maruti Suzuki, Tata Motors, Piaggio Vehicles, and Royal Enfield. These collaborations purportedly designated J&K Bank as the preferred financier, allegedly limiting consumers’ options when seeking vehicle loans.

Per a statement by the CCI, these kinds of partnerships and salary account arrangements are typical in the banking industry and do not in themselves suggest an abuse of market power. The regulator concluded that such practices, in isolation, do not contravene the principles outlined in the Competition Act.

By dismissing the case against J&K Bank at the preliminary stage, the CCI reaffirmed its stance that ordinary commercial agreements between banks and other entities—unless proven otherwise—do not automatically constitute anti-competitive behavior.

Source: Financial Express