'KCCI successfully advocates removal of Rs 50 lakh rider on J&K Bank's OTS Scheme'

Srinagar, Oct 27: In a significant development for borrowers in the region, the Kashmir Chamber of Commerce and Industry (KCCI) has secured a commitment from the top management of Jammu and Kashmir Bank to eliminate the Rs 50 lakh rider on the One Time Settlement (OTS) scheme.

This move is aimed at making the scheme accessible to a larger section of borrowers who are seeking to avail its benefits to settle their loans with the bank.

KCCI President, Javid Tenga told Greater Kashmir ” We have successfully advocated the removal of Rs 50 lakh rider on J&K Bank’s OTS scheme and hopefully, the official announcement will be made in few days.”

Tenga said that he discussed this crucial matter with the Lieutenant Governor of Jammu and Kashmir, Manoj Sinha, and subsequently met with the CEO of J&K Bank to address the issue.

Tenga expressed his concern that the Rs 50 lakh rider was preventing numerous borrowers from qualifying under the existing OTS Scheme, which was announced by J&K Bank earlier.

He sought the LG’s intervention to urge J&K Bank to remove this mortgage rider, making the scheme more inclusive during the meeting with the LG on Thursday.

During the discussions, Tenga also requested the LG’s approval for KCCI’s participation in the International IT fair organised by the Electronics and Computer Export Promotion Council (ESC). This invitation followed a Memorandum of Understanding (MOU) signed earlier this year between KCCI and ESC.

Additionally, the KCCI President extended an invitation to the LG to inaugurate the KCCI pavilion at the India International Trade Fair (IITF) scheduled to take place at Pragati Maidan, New Delhi, from November 14 to 27.

As per Tenga, LG assured KCCI that he would work to persuade the CEO/MD of J&K Bank, Baldev Prakash, to find a solution to the Non-Performing Asset (NPA) issue, thereby alleviating the problems faced by borrowers. He also consented to inaugurate the KCCI Pavilion at the Pragati Maidan Trade Fair.

According to KCCI’s statement,  the LG expressed his commitment to explore KCCI’s participation in the ESC-organised International IT Exhibition.

In his efforts to address the NPA accounts issue, President KCCI also held a meeting with CEO/MD of J&K Bank, Baldev Prakash.

During the meeting, Tenga informed the CEO J&K Bank about the positive response received from the LG regarding stressed and NPA accounts.

According to Tenga, CEO of JK Bank assured that J&K Bank would soon eliminate the mortgage rider in the existing Rs 50 lakh OTS Scheme, making it applicable to a larger number of borrowers. He also committed to introducing another scheme with a higher capping.

President KCCI expressed his gratitude to the LG and the CEO/MD of Jammu & Kashmir Bank for their proactive response, hoping that these measures would benefit a significant number of borrowers with NPA accounts in the region.