50,000 New Entrepreneurs

In a significant move to promote self-employment and economic growth, banks in Jammu and Kashmir have disbursed a staggering Rs 2,223 crore to over 50,000 beneficiaries under various employment generation schemes during the fiscal year 2023-24. This substantial financial support underscores the growing interest among the J&K's youth in entrepreneurship and self-employment opportunities.

According to official data, banks operating in J&K have sanctioned Rs 2,233.76 crore in favour of 50,418 beneficiaries against the sponsorship of 71,062 cases. These funds were distributed across multiple schemes, including the Prime Minister's Employment Generation Programme (PMEGP), National Rural Livelihood Mission (NRLM), National Urban Livelihood Mission (NULM), Pradhan Mantri MUDRA Yojana (PMMY), Credit Card Scheme for Artisans & Weavers, and the Jammu and Kashmir Rural Employment Generation Programme (JKREGP). The PMEGP saw the highest allocation, with Rs 1,519.24 crore disbursed to 26,503 beneficiaries, followed by the NRLM with Rs 574.49 crore for 18,818 beneficiaries. Other significant disbursements included Rs 24.76 crore under NULM, Rs 7.90 crore under PMMY, Rs 34.07 crore for artisans and weavers, and Rs 73.31 crore under JKREGP.

Despite these achievements, concerns have been raised about pending applications. As of March 31, 2024, out of 3,136 pending applications, 2,205 were less than 30 days old, 644 were between 30-60 days, and 287 had been pending for over 60 days. Addressing this issue, the MD & CEO of J&K Bank has directed banks to process applications within stipulated timelines, emphasising that delays are demotivating for applicants. He also warned of action against officials creating unnecessary hurdles in sanctioning cases under government-sponsored schemes.

During a review meeting as per minutes of the meeting, the Chief Secretary of J&K expressed concern over the high rejection rate of 25% under these schemes. He called for proper scrutiny of cases by sponsoring agencies before submission to banks and directed banks to provide clear reasons for rejections. The Chief Secretary also emphasised the need to ease formalities in sponsored schemes to make them more accessible to the general public. To improve the process, several key decisions were made. Banks have been directed to provide financial assistance to genuinely needy unemployed youth and to refrain from creating procedural hazards while processing cases. The J&K UTLBC will now include data on credit disbursement under these schemes in their agenda, ensuring better tracking and accountability.

Furthermore, government sponsoring agencies have been tasked with confirming the reasons for case rejections given by banks and assisting in the recovery of dues under government-sponsored schemes. This collaborative approach aims to streamline the process and reduce unnecessary rejections. The initiative reflects the administration's commitment to promoting self-employment and economic growth in Jammu and Kashmir. By focusing on streamlining processes and ensuring timely financial support to eligible beneficiaries, the government aims to create a more conducive environment for entrepreneurship and job creation in the Union Territory.

As J&K continues to navigate economic challenges, these employment generation schemes and the substantial financial support provided by banks are expected to play a crucial role in fostering economic development and creating opportunities for the youth of Jammu and Kashmir.