Srinagar: The Federation of Chambers of Industries Kashmir (FCIK) has called for immediate intervention from the Reserve Bank of India (RBI) to provide much-needed relief to existing industrial units in Jammu & Kashmir that have been severely impacted by prolonged turmoil and natural calamities in the region.
A delegation from FCIK, led by President Shahid Kamili, participated in a day-long Town Hall Meeting organized by the RBI on Tuesday. The meeting was chaired by Chander Shekhar Azad, Regional Director of RBI, J&K, and attended by prominent figures, including Ashtosh Sareen and Syed Rais Maqbool, General Managers of J&K Bank, the General Manager of Punjab National Bank, Senior functionaries of RBI, Suhail Allaqaband, Assistant Director of MSME, and senior officers from various nationalized and commercial banks. Shakeel Qalander and Afaq Qadiri were also part of the FCIK delegation.
The meeting, aimed at raising awareness about banking facilities for entrepreneurs and connecting unbanked individuals to formal banking channels, featured opening remarks from the Regional Director of RBI, who highlighted the program’s objectives and the role of banks in the region’s economic development. Several presentations were made during the event, covering key topics such as the Credit Information Bureau India Limited (CIBIL) Scoring, the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme, and the Trade Receivable Discounting System (TREDS). Additionally, the General Manager of J&K Bank and the Deputy General Manager of Punjab National Bank provided performance data of their banks in the region.
FCIK President Shahid Kamili acknowledged the RBI’s efforts in raising awareness but emphasized the urgent need for focused interventions for existing Micro, Small, and Medium Enterprises (MSMEs), which are the backbone of the region’s economy. Kamili pointed out that while debt waiver and reduction packages were introduced in other turmoil-hit regions like Punjab, Jammu & Kashmir has not seen similar initiatives to revive its distressed businesses.
He called on the RBI to prioritize the revival and restructuring of viable businesses, ensuring that MSMEs are not prematurely classified as Non-Performing Assets (NPAs) in gross contravention to RBI guidelines.
Kamili also proposed the introduction of bridge loans to help businesses acquire NPAs and ensure their continued operations, alongside a non-discriminatory, transparent, and flexible Special One-Time Settlement (OTS) scheme with favorable repayment terms.
For new enterprises, FCIK stressed the need for simplified loan application processes, customized financial products, and better implementation of government schemes such as MUDRA, CGTMSE, and PMEGP. The Federation also highlighted the importance of fair lending practices, particularly regarding interest rates and collateral requirements, which have been significant barriers for local entrepreneurs.
FCIK emphasized that existing businesses should receive equal attention as new ventures to ensure sustainable economic recovery in Jammu & Kashmir. The Federation urged the RBI to take immediate action to provide relief to these businesses and create a more inclusive financial ecosystem.
In response to FCIK’s concerns, Kamal Mr Chandershekhar assured the meeting of a focused approach on industry revival through institutional interventions and a multi-pronged strategy. He committed to holding the next regional RBI meeting in Srinagar to document the issues and recommendations and formulate strong action steps.
At the meeting, FCIK handed over a 7-page document outlining the areas where urgent RBI intervention is required. The document included detailed proposals for supporting MSMEs and facilitating smoother access to credit and relief mechanisms.
FCIK members Syed Nasir Bukhari, Ashfaq Majeed, Aqib Mir, Daanish Mattoo, and Syed Omar Rasool, along with numerous other participants, also attended the meeting.
