Srinagar, June 24: The Kashmir Chamber of Commerce and Industry (KCCI) has been requesting that the Jammu and Kashmir Bank extend the repayment deadline under its Special One-Time Settlement Scheme — Karz Se Mukti — by six months in light of the recent economic setbacks faced by businesses across the Valley following the Pahalgam incident.

The OTS scheme, which allowed eligible borrowers to settle their outstanding accounts under a limited-time arrangement, had a repayment deadline set for the end of June for those who availed of it by March 31. However, given the loss of business activity and disruption in tourism, trade and commercial activities after the Pahalgam incident, many business owners have been unable to mobilise the required funds within the stipulated time.
KCCI appeals to Jammu and Kashmir Bank to extend the repayment period by at least six months, allowing borrowers an opportunity to honour the terms of the settlement in a more feasible timeframe. The Chamber believes that such a step would demonstrate the bank’s sensitivity to ground realities and its support for the local business community during difficult times.
Further, KCCI highlights that the J&K Bank management had earlier assured stakeholders of a new One Time Settlement (OTS) scheme with an enhanced ceiling as per MSME guidelines, which would benefit larger accounts that were left out of the earlier initiative.
The Chamber has called for the immediate announcement of this new scheme in line with MSME guidelines to provide relief to stressed enterprises operating at a larger scale.
With market sentiment remaining fragile and financial stress deepening across multiple sectors, KCCI believes that such timely and inclusive financial measures are critical to stabilising the business ecosystem and encouraging economic revival in Jammu and Kashmir.