KCCI Urges J&K Bank to Extend OTS Repayment Deadline Amid Post-Pahalgam Economic Stress

Srinagar: The Kashmir Chamber of Commerce and Industry (KCCI) has urged the Jammu and Kashmir Bank to extend the repayment deadline under its Special One-Time Settlement (OTS) Scheme — Karz Se Mukti — by six months, citing widespread economic disruption following the recent Pahalgam incident.

In a statement issued by KCCI Secretary General Faiz Ahmad Bakshi, the Chamber highlighted that the economic fallout of the incident had severely impacted tourism, trade, and commercial activities across the Valley, leaving many businesses unable to meet the current repayment deadline of June-end for accounts settled by March 31.

The Karz Se Mukti scheme was launched to allow eligible borrowers a limited-time opportunity to settle their non-performing accounts. However, the Chamber pointed out that in the wake of recent events, numerous businesses have struggled to raise the required funds within the prescribed timeframe.

KCCI has appealed to the J&K Bank to show flexibility and extend the repayment deadline by at least six months, allowing affected borrowers a more practical window to fulfil their obligations. “Such a measure would reflect the bank’s responsiveness to ground realities and reinforce its commitment to supporting the local business community in times of distress,” the statement said.

The Chamber also reminded that the J&K Bank management had earlier assured business stakeholders of a forthcoming OTS scheme with an enhanced ceiling aligned with MSME guidelines. This new scheme, KCCI noted, is expected to benefit larger enterprises that were ineligible under the previous scheme.

The KCCI has called for the immediate rollout of the new OTS scheme to provide timely relief to distressed businesses and to support larger economic players navigating prolonged financial strain.

With market sentiment still fragile and stress mounting across multiple sectors, the Chamber emphasised that inclusive and timely financial support mechanisms are essential to restoring confidence and promoting economic revival in Jammu and Kashmir.