Srinagar: The Associated Chamber of Commerce and Industry Kashmir (CCIK) has urged the J&K Bank to give a time period of two years to the loan defaulters for the repayment through a one-time settlement (OTS) scheme.
In this regard, CCIK President Tariq Rashid Ghani held a detailed meeting with J&K Bank CEO Baldev Prakash and President, J&K Bank Rayees Maqbool and apprised them about the financial stress business units are undergoing due to the impact of prolonged Covid 19 pandemic.
He urged the Bank management to provide two years of time for the borrowers to clear their debt through a one-time settlement scheme and extend the last date of availing of the scheme from March 15 to May end. The CCIK further urged the Bank authorities to not deduct insurance amounts against the loan amount from borrowers without their consent.
“The borrower should be at liberty to take the insurance policy of the loan amount from any company,” he said. The CCIK President further requested the JKB management to not publish the details of the defaulters in the newspapers which damages their business reputation. CCIK said most of the business units in the Valley are under financial stress due to sluggish business on account of repeated Covid lockdowns and slow economic activities.
The chamber urged the LG Administration to take into account the financial crisis of the businessmen and impress upon the JKB to provide a moratorium for restructuring the loans so that NPAs are revitalized.