KCCI raises alarm over limited financial support for Kashmir businesses

Srinagar, Mar 20: The Kashmir Chamber of Commerce and Industry (KCCI) voiced serious concerns about inadequate financing for MSMEs and startups at a Reserve Bank of India town hall meeting in Srinagar on Tuesday.

A statement issued by the chamber said that a delegation Led by Senior Vice President Ashiq Hussain Shangloo, alongside Secretary General Faiz Bakshi and Executive Committee members, the KCCI delegation engaged with RBI Regional Director Chandrashekhar Azad and top bank executives operating in Kashmir.

The delegation highlighted Kashmir’s alarming 32.8% unemployment rate among urban youth aged 15-29, as reported by the Ministry of Statistics and Programme Implementation. They emphasized a troubling disconnect between officially reported statistics on MSME development and the ground realities experienced by local entrepreneurs.

According to KCCI, banks frequently cite RBI guidelines to justify complex procedural requirements that appear to contradict Supreme Court directives on business financing accessibility. The Chamber referenced findings from the Parliamentary Standing Committee that highlight systematic failures by banking institutions to support Kashmir’s emerging business ecosystem.

“Specific obstacles identified include severely limited access to the Prime Minister’s Employment Generation Programme (PMEGP), procedural complications in business establishment, and prohibitive financing conditions that disproportionately affect Kashmiri businesses.”

The Chamber also raised concerns about CIBIL score assessment methodologies in the region, advocating for contextual evaluation mechanisms that account for Kashmir’s unique economic circumstances. Additionally, they criticized public sector banks for their minimal lending toward priority sectors in Kashmir.

As a concrete solution, KCCI formally proposed establishing a full-fledged RBI office in Kashmir, arguing that the region’s geographic isolation and specific economic challenges justify a dedicated regulatory presence beyond current limited operations.

RBI Regional Director Azad assured the delegation their concerns would be communicated to the central office. The meeting concluded with a question-and-answer session, with KCCI expressing appreciation for the RBI’s initiative in organizing the event, the statement said.