Srinagar, Nov 10: The Kashmir Chamber of Commerce and Industry (KCCI) has welcomed J&K Bank’s RAHAT Special One-Time Settlement Scheme (SOTS-2026), while calling for a broader SBI-pattern settlement scheme to address the mounting legacy debt of businesses across Jammu and Kashmir.

The Chamber said RAHAT offers relief to eligible borrowers with principal non-performing asset (NPA) outstanding of up to Rs 5 crore, but leaves out a significant section of businesses with liabilities exceeding the prescribed limit.
KCCI said prolonged economic disruptions had pushed several otherwise viable businesses into financial distress, resulting in mounting liabilities, NPAs and recovery proceedings.
It urged Lieutenant Governor Manoj Sinha and Chief Minister Omar Abdullah to take up the issue on priority and facilitate a dedicated Special One-Time Settlement scheme on the lines of SBI through J&K Bank.
The Chamber said the J&K Government, as the Bank's majority shareholder, could play an important role in taking up the proposal with its Board and management, subject to regulatory and governance requirements.
The proposed scheme should cover eligible stressed business accounts beyond the existing Rs 5 crore ceiling and offer realistic settlement terms to traders, industrialists, MSMEs, hospitality establishments and other entrepreneurs.
Clarifying that the demand was not for a blanket loan waiver, KCCI said it sought a fair and transparent settlement mechanism to help genuinely distressed borrowers clear their liabilities and revive their businesses.
It said resolving legacy debt would help revive economic activity, protect jobs and livelihoods, and restore confidence in the region's business environment.
KCCI expressed hope that the government and J&K Bank management would initiate consultations on the proposal without delay.