ICC Jammu submits memorandum to RBI on J&K’s MSME challenges, bank deposit safety

Jammu: The Indian Chamber of Commerce (ICC) Jammu, led by its chairman Rahul Sahai, submitted a detailed memorandum to Chander Shekhar Azad, regional director of the Reserve Bank of India (RBI) for Jammu & Kashmir and Ladakh, during the 66th Empowered Committee Meeting held in Jammu.

According to a press release issued to Ziraat Times, the memorandum highlighted the escalating challenges faced by MSMEs in the Union Territory due to the recent war-like situation. It pointed to significant economic disruptions, including damage to homes in border areas, closure of businesses, cancellation of flights and trains, labour shortages, and a sharp decline in tourism and overall business activity.

The ICC delegation expressed concern over the financial stress building up in the sector, particularly regarding unsecured bank credit limits during conflict, continued interest charges in the absence of economic activity, delays in GST refunds, pending government scheme payments such as Ayushman Bharat, and challenges in insurance claims for properties due to “Act of War” clauses.

To mitigate these challenges, the Chamber proposed key interventions. These include:

• Direction to IRDAI to extend war-risk insurance for J&K properties

• Special RBI advisories to ensure MSME accounts are not blocked or downgraded due to regional instability

• Simplified financial products like loans against pending Ayushman Bharat payments and solar financing for MSMEs

• Liberal credit renewal, issuance of stress loans, and a six-month interest reimbursement similar to COVID-era relief

• Region-specific relaxations in credit restructuring, CIBIL scores, and working capital support

• Audit of non-compliance by buyers on TReDS platforms like RXIL and M1 Exchange

The Chamber also raised concern about the security of public deposits and bank lockers in war-prone zones, urging for relocation of lockers to secure basements and creation of robust protocols.

On cybersecurity, ICC Jammu called for immediate cyber audits of banking systems and the creation of dedicated cyber response teams across banks in the region.

Presenting the memorandum, Rahul Sahai stressed the urgency of stabilising the economic landscape and restoring MSME confidence in Jammu & Kashmir. He reaffirmed the Chamber’s support to the Government of India and urged for prompt action.

In his concluding remarks, RBI regional director Chander Shekhar Azad appreciated the role played by banks and industry associations. He urged associations to enhance MSME awareness regarding Udyam registration, TReDS, and various central government schemes, the added.