Scheme covers NPAs, technically written-off accounts and recoverable loan advances; applications to be received by February 4, 2027

Firdous Ahmad

SRINAGAR, Nov 5: Jammu and Kashmir Bank has announced its Special One-Time Settlement Scheme, RAHAT (SOTS-2026), covering eligible loan accounts with principal Non-Performing Asset (NPA) outstanding balances of up to Rs 5 crore.

According to a circular issued by the Bank on November 4, 2026, the scheme has been divided into two categories. Segment A covers accounts with principal NPA outstanding below Rs 25 lakh, while Segment B covers accounts with outstanding amounts ranging from Rs 25 lakh to Rs 5 crore.

The scheme covers accounts classified as Doubtful (DF-I, DF-II and DF-III), Loss Assets, Technically Written-Off Accounts (TWOs) and Recoverable Loan Advances (RLAs), subject to the prescribed eligibility conditions.

The eligibility reference date for the scheme is June 30, 2026. The initiative will come into effect from November 5, 2026, and the last date for receipt of applications has been fixed as February 4, 2027.

The Bank has described RAHAT as a special, uniform and pre-approved settlement initiative. The circular states that the scheme will be non-discretionary and non-discriminatory in nature.

Under the initiative, the Bank has set an institutional recovery objective of at least 90 percent of the eligible portfolio.

The scheme is aimed at facilitating the settlement of eligible stressed loan accounts through a structured framework.

The detailed settlement terms, concessions and payment conditions are governed by the scheme’s prescribed guidelines.

Source: J&K Bank circular dated November 4, 2026. The uploaded two-page circular does not contain the detailed settlement calculations or concessions.