SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has called for immediate intervention from the Reserve Bank of India (RBI) to support Micro, Small, and Medium Enterprises (MSMEs) in Jammu & Kashmir, which have suffered due to prolonged turmoil and natural calamities.
A delegation from FCIK, led by its President Shahid Kamili, participated in a Town Hall Meeting organised by the RBI in Srinagar on Tuesday. The meeting, chaired by Kamal P. Patnaik, Regional Director of RBI for J&K, brought together senior banking officials, including General Managers from J&K Bank and Punjab National Bank, as well as representatives from other financial institutions and regulatory bodies.
The event aimed at enhancing banking awareness among entrepreneurs and expanding financial inclusion. The Regional Director of RBI outlined the programme’s objectives and the banking sector’s role in the region’s economic development. Key presentations covered topics such as Credit Information Bureau India Limited (CIBIL) scoring, the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme, and the Trade Receivable Discounting System (TREDS). Performance reports of banks operating in the region were also presented.
During the meeting, FCIK President Shahid Kamili commended the RBI’s awareness initiatives but emphasised the pressing need for targeted relief measures for struggling MSMEs. He pointed out that while debt relief measures have been introduced in other crisis-affected regions like Punjab, similar support has not been extended to Jammu & Kashmir, leaving many businesses vulnerable.
Kamili urged the RBI to focus on the revival and restructuring of viable businesses and to prevent MSMEs from being prematurely categorised as Non-Performing Assets (NPAs) in contravention of RBI guidelines. He also proposed the introduction of bridge loans to aid business recovery and suggested a fair and transparent Special One-Time Settlement (OTS) scheme with favourable repayment terms.
For new enterprises, FCIK advocated for simplified loan processes, customised financial products, and improved implementation of government schemes such as MUDRA, CGTMSE, and PMEGP. The Federation also highlighted the need for fair lending practices, particularly concerning interest rates and collateral requirements, which continue to pose challenges for local entrepreneurs.
FCIK stressed that while promoting new ventures is important, existing businesses require equal attention to ensure a sustainable economic recovery. The Federation called on the RBI to take urgent steps to create a more inclusive financial ecosystem in Jammu & Kashmir.
In response, Kamal P. Patnaik assured the gathering that the RBI would adopt a focused approach towards industry revival through institutional interventions and a multi-pronged strategy. He committed to holding the next regional RBI meeting in Srinagar to document concerns, review recommendations, and formulate action plans.
FCIK submitted a detailed seven-page document outlining critical areas for RBI intervention, including proposals for improved credit access and relief mechanisms for MSMEs. The meeting was attended by FCIK members Syed Nasir Bukhari, Ashfaq Majeed, Aqib Mir, Daanish Mattoo, and Syed Omar Rasool, along with senior banking officials and industry representatives.
