New J&K Bank OTS Scheme: KCCI says dismayed over the scheme

Srinagar, July 29: The Kashmir Chamber of Commerce & Industry (KCCI) held a special Executive Committee meeting on Friday, July 28, which deliberated on the One Time Settlement Scheme for NPAs/RLAs (JKB Special OTS-2023 Scheme) recently announced by the Jammu & Kashmir Bank.

“The Executive Committee expressed its utter disappointment over the scheme on the qualifications, tenure and capping. The KCCI in its meeting held with the MD/CEO J&K Bank Baldev Prakash on 21st of March early this year had impressed upon him the necessity and importance for a new OTS Scheme applicable across all types of borrowers upto the 50 Crores with a time period of 2 years which would be beneficial both to the bank and the defaulted borrowers – the bank would recover the loaned money whereas the borrowers would repay the loan and move ahead”, KCCI said in a statement issued to Ziraat Times.

“The KCCI was given a clear assurance that matters raised by KCCI in the discussed and submitted memorandum would be seriously considered. The Bank assurances had given great hope to the borrowers who have since been seriously engaged in the process of arranging money through sale of their assets for settlement of their cases under the promised OTS Scheme”, the statement further said.

Maintaining that the KCCI also raised the matter with Hon’ble Lt Governor and the Worthy Chief Secretary, KCCI said it discussed the matter with the MD/CEO J&K Bank in a subsequent meeting as well.

“He was also reminded of his promise through a KCCI press note of 13th of June, 2023.The KCCI has been contacted by a large number of borrowers and affiliated organisations expressing their disbelief over the OTS Policy ( Upto 50 lacs) which they believe is hardly going to benefit any significant section of borrowers”, the Executive Committee noted during the meeting.

“The KCCI has decided that it will take up the matter again with the Jammu & Kashmir Bank and at other appropriate levels and impress upon them to announce an OTS Scheme which would be any consequence for borrowers”, the statement said.