Borrowers get breathing room as J&K Bank OTS repayment deadline extended till Sept 1
Srinagar, July 2: The Kashmir Chamber of Commerce and Industry (KCCI) has conveyed its deep appreciation to Jammu and Kashmir Bank for extending the repayment deadline under its Special One-Time Settlement Scheme — Karz Se Mukti — by two months, now valid up to September 1, 2025.
A statement said that this timely relief, which comes in direct response to KCCI’s appeal, underscores the bank’s continued commitment to the business community of Jammu and Kashmir, particularly during times of economic distress.
KCCI especially thanked Lieutenant Governor Manoj Sinha, Chief Minister Omar Abdullah, Chief Secretary Atal Dulloo, and J&K Bank Managing Director and CEO Amitava Chatterjee for their interventions that led to this much-needed extension. The Chamber had strongly advocated for this support following the April 22 Pahalgam terror incident, which severely disrupted trade, tourism, and overall business activity across the Valley.
The Special OTS scheme has been vital for distressed borrowers, allowing them to settle long-standing dues. However, many beneficiaries who had opted in before the March 31 deadline were struggling to meet the original June 30 repayment timeline due to the post-crisis slowdown. The extended deadline will enable these enterprises to meet their obligations and avoid slipping into deeper financial difficulty.
KCCI also acknowledged the earlier assurance from the J&K Bank management regarding the launch of a new One-Time Settlement scheme with a higher ceiling aligned with MSME norms. The Chamber urged the bank to introduce this enhanced scheme at the earliest to support larger, yet equally stressed, accounts that remain outside the scope of the current package.
The Chamber welcomed J&K Bank’s proactive and empathetic approach, viewing it as a strong signal of institutional support for local enterprise. KCCI reaffirmed its commitment to work closely with the bank and administration to support business revival and strengthen the region’s financial ecosystem.
