Srinagar, Aug 26: A delegation of the Kashmir Chamber of Commerce & Industry (KCC&I) led by its President Javid Ahmad Tenga met with the Chief Secretary Dr. Arun Kumar Mehta at the Civil Secretariat on August 25, 2023 to discuss the implications and ‘impracticalities’ of the Special OTS Scheme recently announced by the J&K Bank in relation to its NPAs.
According to a statement issued to Ziraat Times, the delegation highlighted the concern that the upper limit of 50 lakhs for the scheme was too low and excludes a large number of borrowers.
It also maintained that the repayment period of two years was too short, given the current economic conditions. It also said that the scheme does not cover NPAs with collateral securities.
The delegation made the following suggestions to make the OTS Scheme more practical and adaptable:
The criteria of qualification should be extended to borrowers with collateral securities.
The upper limit of qualification should be significantly increased.
The repayment period should be extended.
According to KCCI, the Chief Secretary agreed with the suggestions made by the delegation and assured them that he would take up the matter with the Bank authorities for an early and effective resolution.
The KCC&I delegation also assured the Chief Secretary of their full cooperation to work as a facilitator between the NPAs account holders and the Bank to help make the OTS Scheme successful. They also clarified that the KCC&I would not support any willful defaulters with the Bank.
The meeting was a productive one and the KCC&I delegation is hopeful that the OTS Scheme will be made more practical and adaptable to the needs of the borrowers, KCCI statement said.
About KCCI:
The KCC&I is the apex trade body of Kashmir and represents the interests of over 100,000 businesses in the region.
The J&K Bank is the largest bank in Jammu and Kashmir and has a significant exposure to NPAs. The OTS Scheme is a government-backed initiative to help borrowers settle their NPAs.
