Excelsior Correspondent
Srinagar, Nov 18: The Kashmir Chamber of Commerce and Industry (KCCI) today called for a special One-Time Settlement (OTS) scheme to support distressed borrowers, mirroring the successful model implemented in 2022-23.
In a statement issued here, KCCI emphasized that the special OTS scheme should be without capping, riders, or tenure restrictions, in line with MSME norms.
This, it said, would ensure wider accessibility and a more effective economic recovery for businesses affected by various crises.
KCCI also lauded the “remarkable growth” trajectory and the “improving” Non-Performing Assets (NPA) ratio of J&K Bank.
“Multiple unprecedented events have severely impacted the business community, including the devastating floods of 2014, civil unrest in 2016, the global COVID-19 pandemic, and the events of 2019,” the statement read.
The Chamber noted that these circumstances, beyond the control of business owners, had caused many accounts to slip into the NPA category.
KCCI urged that as J&K Bank strengthens its financial position, this success should translate into tangible support for struggling account holders.
“The chamber advocates for an immediate halt to NPA name publications, suspension of property possession notices, and cessation of mortgage property e-auctions. These measures, combined with a special OTS scheme aligned with MSME norms, would create a supportive environment for business recovery,” it stated.
The proposed special OTS scheme, the Chamber said, should represent a balanced approach, aiding the revival of stressed businesses while contributing to the overall economic health of the region.
The trade body stressed that this initiative would create a mutually beneficial situation, supporting both the bank’s long-term stability and the business community’s recovery.
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