SRINAGAR: Kashmir Chamber of Commerce and Industry (KCC&I) leaders have met Chief Secretary Dr Arun Kumar Mehta asking him to address the concerns and feasibility issues surrounding the recently unveiled Special One-Time Settlement (OTS) Scheme by the Jammu and Kashmir Bank pertaining to its Non-Performing Assets (NPAs).
The delegation led by Javed Tenga, comprised of prominent business leaders and stakeholders, articulated their reservations regarding the discrepancies between the OTS Scheme and the recommendations put forth by the KCCI after thorough consultations with various vested parties. Chief among the reservations were the discriminatory conditions embedded within the scheme, including a capped upper limit of Rs 50 lakhs, a shortened repayment timeframe, and the exclusion of NPAs backed by collateral securities, according to a statement issued by the Chamber.
The delegation said it highlighted the potential negative impact of these restrictions on borrowers who had been struggling due to the region’s tumultuous economic history spanning decades. Emphasising the need for comprehensive support, they proposed several modifications to render the OTS Scheme pragmatic and inclusive.
The suggestions presented by the delegation included expanding the eligibility criteria to encompass borrowers with collateral securities; substantially elevating the upper limit for qualification under the Special OTS Scheme to maximise the resolution of NPAs; and extending the repayment timeline significantly, considering the economic challenges faced by long-standing borrowers due to the prolonged disturbances in the region.
Dr Mehta, demonstrating receptivity and understanding, concurred with the recommendations made by the delegation. He assured them that the concerns would be taken up with the concerned authorities at the Jammu and Kashmir Bank, with a focus on prompt and effective resolution.
The delegation said it pledged their support and cooperation in mediating between NPAs and the bank, thereby facilitating the successful implementation of the OTS Scheme. The delegates also underlined their commitment to not advocate for or endorse wilful defaulters with the bank.