The Biz Reporter
Srinagar, July 2: The Kashmir Chamber of Commerce and Industry (KCCI) has expressed its deep appreciation to Jammu and Kashmir Bank for extending the repayment deadline under its Special One-Time Settlement (OTS) Scheme — Karz Se Mukti — by two months, now valid up to September 1, 2025.
Describing the extension as timely and much-needed, KCCI stated that the decision came in direct response to its request and reflects the bank’s continued commitment to supporting the region’s business community during challenging times.
The Chamber especially extended its gratitude to Lieutenant Governor Manoj Sinha, Chief Minister Omar Abdullah, Chief Secretary Atal Dullo, and J&K Bank MD & CEO Amitava Chatterjee for their swift and empathetic intervention. The Chamber had strongly taken up the matter following the April 22 terror attack in Pahalgam, which led to a significant downturn in tourism, trade, and related economic activities across the Valley.
KCCI noted that the Karz Se Mukti scheme has been a critical support mechanism for struggling borrowers, enabling them to clear long-pending liabilities. However, many businesses that had registered under the scheme by the March 31 deadline were unable to meet the original June 30 repayment date due to financial constraints. The extension now offers these enterprises a crucial window to meet their obligations and avoid further distress.
The Chamber also recalled J&K Bank’s earlier assurance regarding the introduction of a new OTS scheme with a higher ceiling, in line with MSME guidelines. It urged the bank to announce this enhanced scheme soon, to extend similar relief to larger but equally stressed accounts that could not benefit from the current package.
KCCI welcomed the bank’s responsiveness and its understanding of the ground realities of Valley-based businesses. The Chamber reaffirmed its commitment to continued engagement with J&K Bank and the administration in efforts to strengthen the region’s financial ecosystem and accelerate economic recovery.
