Extend deadline for special OTS scheme: Industry to J&K Bank

The Kashmir Chamber of Commerce and Industry (KCCI) has requested Jammu and Kashmir Bank’s Chief Executive Officer/Managing Director, Amitava Chatterjee to extend the deadline for the bank’s special One-Time Settlement (OTS) scheme.

The bank’s current closing date for the scheme is March 31, but the KCCI is seeking a two-month extension to allow business owners more time to settle their outstanding accounts.

In a statement issued on Friday, KCCI, the Valley’s top trade body, acknowledged the significance of the Special OTS Scheme launched on January 1. However, it emphasised that numerous business owners still require additional time to fully utilise this opportunity. “The chamber has received multiple representations from members and potential beneficiaries expressing concerns about the current timeline,” the statement said.

The chamber noted that many businesses continue to struggle with recovery from previous economic disruptions and need more time to mobilise the necessary resources to settle their debts. “The harsh winter conditions, coupled with the ongoing holy month of Ramadan, have created additional challenges for borrowers attempting to liquidate assets to meet payment requirements,” the statement pointed out.

KCCI further highlighted that the overall business sentiment in Kashmir remains subdued, which has made it difficult for distressed borrowers. “Current market conditions have made it exceptionally challenging for business owners to sell properties or other assets at fair valuations, complicating efforts to arrange funds within the existing timeframe,” the chamber said.

According to the KCCI, extending the deadline would not only assist J&K Bank in addressing non-performing assets but would also contribute to broader economic rehabilitation efforts across the region. “The requested extension would serve dual purposes — helping J&K Bank address non-performing assets while supporting broader economic rehabilitation efforts across the region,” the statement concluded. The chamber maintains that such an extension is “not merely helpful but essential for many distressed borrowers”.