SRINAGAR: A delegation from the Kashmir Chamber of Commerce and Industry (KCCI) met with Amitava Chatterjee, Chief Executive Officer and Managing Director of Jammu and Kashmir Bank, at the bank’s corporate headquarters in Srinagar. The meeting, attended by top executives from J&K Bank, addressed key issues affecting the business community, including the implementation of a special One-Time Settlement (OTS) scheme, staffing shortages, and the need to lower interest rates for borrowers.
KCCI clarified its stance on Non-Performing Assets (NPAs), asserting that it does not support willful defaulters but aims to assist borrowers who have turned into NPAs due to uncontrollable circumstances. The delegation extensively discussed the existing Special OTS Scheme, advocating for its overhaul and the removal of restrictive conditions to better serve the business community. President Tenga also pushed for a new OTS scheme without conditions, in line with MSME norms and with an extended tenure. In response, Chatterjee assured the delegation that the bank would revisit the scheme and explore options to alleviate the financial burden on borrowers.
During the discussions, KCCI strongly opposed the practice of naming and shaming borrowers, urging the bank to discontinue the approach. The delegation also emphasized the urgent need to lower interest rates to stimulate economic growth and enhance the viability of small businesses. They advocated for hassle-free financing and streamlined processes to improve timely credit access.
Recognising the significant role of small shopkeepers and traders in Kashmir’s economy, Chatterjee issued immediate directions to J&K Bank executives to ensure adherence to the credit guarantee scheme guidelines, which are designed to support small enterprises.
The delegation also highlighted the inadequate staffing levels at J&K Bank branches, noting that staffing shortages have led to long wait times and diminished service quality, negatively impacting local businesses. KCCI urged the bank to initiate a recruitment drive to fill vacancies, a concern that Chatterjee assured would be addressed.
Additionally, the meeting covered the abolition of the Letter of Credit Utilization (LCU) system. KCCI argued that removing LCUs would improve banks’ responsiveness to the financial needs of businesses and reduce delays in credit access.
To ensure the effective implementation of decisions, KCCI proposed forming a Joint Consultative Committee, comprising bank officials and KCCI representatives, as was previously practised. This initiative aims to strengthen collaboration between J&K Bank and the business community.
Concluding the meeting, KCCI urged J&K Bank to foster cordial interactions with customers, encouraging staff to take ownership and responsibility in their dealings. The chamber reaffirmed its commitment to continued cooperation and assistance in strengthening the financial well-being of borrowers and the business sector in Jammu and Kashmir.
