KCCI Delegation Engages Chief Secretary in In-Depth Discussion Over Implications of J&K Bank’s Special OTS Scheme
26-08-2023 : A delegation from the Kashmir Chamber of Commerce & Industry (KCCI) recently met with Dr. Arun Kumar Mehta, the Chief Secretary, at his office within the Civil Secretariat. Led by its president, Javid Ahmad Tenga, the KCCI delegation engaged in a comprehensive discussion concerning the newly announced Special One-Time Settlement (OTS) Scheme by the Jammu & Kashmir Bank. The focus of the conversation was centered around the potential implications and practical challenges associated with this scheme in relation to the bank’s Non-Performing Assets (NPAs).
During the meeting, the delegation conveyed their reservations to the Chief Secretary regarding the design of the OTS Scheme. They emphasized that the scheme deviated from the proposals that had been meticulously developed by the KCCI, following thorough consultations with various stakeholders. The delegation brought attention to certain discriminatory conditions inherent in the OTS Scheme, such as the imposition of an upper limit of 50 lakhs, a relatively shorter repayment timeframe, and the exclusion of NPAs backed by collateral securities.
In light of the intricacies surrounding the OTS Scheme, the delegation engaged in a detailed discourse highlighting the impracticalities of its current structure. Constructive suggestions were put forth to enhance the scheme’s feasibility and adaptability. The delegation proposed the extension of qualification criteria to include borrowers who could offer collateral as security. Furthermore, they recommended a significant increase in the upper limit for qualification under the Special OTS Scheme. This expansion aimed to have a broader positive impact on the resolution of NPAs. Additionally, the delegation advocated for a considerable extension of the repayment period, taking into consideration the prevailing economic conditions faced by long-standing borrowers. These borrowers have endured the repercussions of three decades of turmoil, necessitating support from both the government and competent authorities.
Acknowledging the validity of the suggestions, the Chief Secretary expressed agreement and assured the delegation that he would take up the matter with the bank authorities promptly in order to facilitate a timely and effective resolution.
In reciprocation, the KCCI delegation conveyed its commitment to collaborating closely with the Chief Secretary to act as a conduit between the NPAs and the bank. Their goal is to play a facilitating role in ensuring the success of the OTS Scheme, thereby contributing to the broader financial stability of the region.
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