Introduce OTS scheme to support distressed borrowers: KCCI urges J&K Bank

Srinagar, Nov 18: Kashmir Chamber of Commerce and Industry (KCCI) has sought the introduction of a Special OTS scheme, mirroring the successful model implemented in 2022-23.
The Chamber stressed that the special OTS scheme should be without capping, riders and restriction of tenure in accordance with the MSME norms that would ensure wider accessibility and more effective economic recovery for businesses affected by various crises.
“The Chamber’s perspective stems from a deep understanding of the challenges faced by local businesses over the past decade. Multiple unprecedented events have severely impacted the business community, including the devastating floods of 2014, civil unrest in 2016, the global COVID-19 pandemic, and the events of 2019. These circumstances, beyond the control of business owners, have led many accounts to slip into the NPA category,” reads the statement.
KCCI maintained that as J&K Bank strengthens its financial position, this success should cascade down to benefit struggling account holders. The Chamber advocates for an immediate halt to NPA name publications, suspension of property possession notices, and cessation of mortgage property e-auctions. These measures, combined with a special OTS scheme aligned with MSME norms, would create a supportive environment for business recovery.
According KCCI the proposed special OTS scheme should represent a balanced approach that would not only aid in the revival of stressed businesses but also contribute to the overall economic health of the region.
KCCI emphasised that the initiative would create a mutually beneficial situation, supporting both the bank’s long-term stability and the business community’s recovery.