The Biz Reporter
Srinagar: The Kashmir Chamber of Commerce and Industry (KCCI) has welcomed J&K Bank’s RAHAT Special One-Time Settlement Scheme (SOTS-2026), calling it a positive, much-needed initiative to relieve financially distressed borrowers. At the same time, the Chamber has renewed its demand for a comprehensive Special OTS on the lines of the State Bank of India’s settlement scheme to address the accumulated legacy debt of businesses across Jammu and Kashmir.
KCCI said that while RAHAT offers eligible borrowers with principal NPA outstanding of up to Rs 5 crore an opportunity, a substantial section of the business community with liabilities beyond this limit remains outside its ambit. These businesses, many of which have suffered prolonged financial distress due to years of economic disruptions, also deserve an opportunity to settle their accounts and revive their operations.
The Chamber said that businesses in Jammu and Kashmir have faced exceptional circumstances over the years. The accumulated impact of these disruptions has pushed several otherwise viable business establishments into a cycle of mounting liabilities, NPAs and recovery proceedings.
KCCI has 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.
The Chamber emphasised that the J&K Government, being the majority shareholder in J&K Bank, has an important responsibility and an effective institutional channel to take up this long-standing demand with the Bank’s Board and management. It urged the government to use its position as the majority shareholder to facilitate the formulation and announcement of a wider settlement scheme, subject to the Bank’s regulatory and governance requirements.
KCCI said the proposed OTS 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.
The Chamber clarified that the demand is not for a blanket waiver of loans but for a fair, transparent and formula-based settlement mechanism that allows genuinely distressed borrowers to discharge their outstanding liabilities, close long-pending accounts and make a fresh beginning.
KCCI said that resolving legacy debt would not only provide relief to individual borrowers but also help revive economic activity, protect employment, safeguard livelihoods and restore confidence in the business environment of Jammu and Kashmir.
While appreciating J&K Bank’s initiative under RAHAT, the Chamber reiterated that a separate and broader Special OTS is essential to ensure that businesses with larger outstanding liabilities are not left without a viable settlement opportunity.
KCCI expressed hope that the Lieutenant Governor, Chief Minister and J&K Bank management would respond positively to the demand and initiate the necessary consultations without further delay.
