Jammu; 27: A delegation of the Kashmir Chamber of Commerce and Industry (KCCI) on Thursday met Amitava Chatterjee, Managing Director and CEO of J&K Bank, at the bank’s Corporate Headquarters in Jammu to discuss the deepening economic stress faced by businesses in Kashmir and seek immediate support from the banking sector.
The delegation was led by KCCI President Javid Ahmad Tenga and included Executive Committee members Irfan Ahmad Guju, Afaq Sarwar, former President of the Bari Brahmana Industrial Association Anil Suri, and other members of the Chamber.
KCCI Acknowledges Bank’s Progress, Flags Economic Crisis in Kashmir
At the outset, the Chamber appreciated the progress J&K Bank has registered under Chatterjee’s leadership, including institutional strengthening and expansion in services.
However, KCCI underlined that economic activity in Kashmir has been under severe stress since April 2025, especially following the Pahalgam incident that triggered a prolonged downturn across sectors. Tourism, trade, handicrafts, transport, manufacturing, services and MSMEs have witnessed shrinking revenues and rising defaults, the Chamber noted.
Demand for Special OTS Scheme, Halt on SARFAESI Notices
A major concern raised during the meeting was the absence of a Special One-Time Settlement (OTS) Scheme, which KCCI said is critical for businesses struggling with cash-flow crises. The Chamber expressed alarm over the rising number of SARFAESI possession notices appearing in local newspapers “almost every day,” calling the trend “deeply distressing and demoralising.”
KCCI urged the bank to temporarily suspend possession notices until a comprehensive OTS scheme is finalized, and sought a liberal, rider-free OTS framework aligned with MSME guidelines and flexible repayment timelines.
Exporters Hit by Global Headwinds
The Chamber also highlighted serious challenges faced by Kashmiri exporters due to global uncertainties, tariff disputes, trade disruptions and delayed payments. It requested strict implementation of RBI’s recent guidelines (RBI/2025-26/96 dated 14 November 2025) to provide immediate relief.
Acknowledging possible gaps in awareness, the MD instructed his team to ensure full compliance across all branches.
Interest Rate Concerns and CGTMSE Issues Raised
KCCI flagged the burden of high lending interest rates, especially for units operating with reduced turnover. The Chamber urged rationalisation of financing costs for stressed accounts and working capital facilities.
Chatterjee informed the delegation that the bank has already reduced interest rates in several segments and said further reductions are under review in line with regulatory norms and market conditions.
The Chamber also expressed concern over the inconsistent implementation of the CGTMSE scheme, noting that eligible borrowers were still being asked to furnish collateral. The MD assured immediate staff training and strict adherence to CGTMSE norms to ensure timely collateral-free credit to MSMEs.
Awareness Programmes Agreed for Srinagar
In a positive development, J&K Bank agreed to hold joint awareness programmes with KCCI in Srinagar, including a major seminar for business customers and a separate session dedicated to exporters focusing on export finance, RBI rules and documentation.
KCCI expressed satisfaction with the productive meeting and the assurances given.
The Chamber reaffirmed its commitment to working closely with J&K Bank to help revive business confidence, support distressed sectors, and restore economic stability in Kashmir.
