Seeks broader SBI-Pattern scheme for larger business accounts
Srinagar, Nov 10: The Kashmir Chamber of Commerce and Industry (KCCI) has welcomed J&K Bank’s RAHAT Special One-Time Settlement Scheme (SOTS-2026), while seeking a broader settlement scheme on the lines of the State Bank of India (SBI) to address the accumulated legacy debt of businesses across Jammu and Kashmir.
In a statement issued to the news agency—Kashmir News Observer (KNO), the Chamber said that while RAHAT provides relief to eligible borrowers with principal NPA outstanding of up to Rs 5 crore, a substantial section of the business community with liabilities beyond this limit remains outside its ambit.
KCCI said businesses in Jammu and Kashmir had faced prolonged financial distress due to years of economic disruptions, pushing several otherwise viable establishments into mounting liabilities, non-performing assets (NPAs) and recovery proceedings.
The Chamber urged Lieutenant Governor Manoj Sinha and Chief Minister Omar Abdullah to take up the matter on priority and facilitate a dedicated SBI-pattern Special OTS for business borrowers through J&K Bank.
It said the J&K Government, being the majority shareholder in the Bank, had an important role in taking up the demand with its Board and management and facilitating a broader settlement scheme, subject to regulatory and governance requirements.
KCCI said the proposed scheme should cover eligible stressed business accounts beyond the existing Rs 5 crore ceiling and provide realistic settlement terms to traders, industrialists, MSMEs, hospitality establishments and other entrepreneurs carrying legacy debt.
Clarifying that the demand was not for a blanket loan waiver, the Chamber said it sought a fair, transparent and formula-based settlement mechanism to enable genuinely distressed borrowers to clear their liabilities, close long-pending accounts and make a fresh beginning.
It added that resolving legacy debt would help revive economic activity, protect employment, safeguard livelihoods and restore confidence in Jammu and Kashmir’s business environment.
While appreciating J&K Bank’s RAHAT initiative, KCCI reiterated that a separate and broader Special OTS was essential to ensure that businesses with larger outstanding liabilities were not left without a viable settlement opportunity.
The Chamber expressed hope that the Lieutenant Governor, Chief Minister and J&K Bank management would respond positively and initiate necessary consultations without further delay. (KNO)
