In a huge relief to the borrowers across the Union Territory of Jammu and Kashmir, Reserve Bank of India (RBI) has allowed the banks in J&K to extend the rehabilitation benefits applicable to the borrowers affected by the recent disturbances in the Union Territory.
The major relief to the borrowers of J&K from RBI was conveyed to J&K SLBC Convener (J&K Bank) in response to the recommendations made by the J&K SLBC chaired by the Chief Secretary J&K B V R Subrahmanyam, which was held on September10, 2019 in Srinagar.
The period for restructuring exercise of the affected borrowers has been extended to June 30, 2020. “Considering the reasons put forth by J&K SLBC, it has been decided to extend the period for completing the restructuring exercise up to June 30, 2020” said the RBI in its communication adding, “All eligible loans under Master Directions which are not overdue as on August 05, 2019 may be reckoned for restructuring.” However, as per the communiqué big /large borrowers are not eligible as per the RBI’s Master directions.
Meanwhile, Lt. Governor UT of J&K, Girish Chandra Murmu has requested for relief of large borrowers on the same lines. Besides, the Government of Jammu and Kashmir has conveyed to the Convener J&K SLBC i.e. J&K Bank, that as part of the Economic Rehabilitation Programme, for a period of one year the J&K Government under its Interest Relief Scheme shall contribute one-third of the monthly installment of the interest payable by the borrowers of all banks operating in the UT of J&K, whose accounts are identified to be eligible for restructuring under RBI’s Master Directions relating to relief measures by Banks in the areas affected by natural calamity subject to the condition that the said borrowers have actually paid the two-thirds of the installment of the accrued monthly interest beforehand.
Notably, the contribution of the government under the Economic Rehabilitation Programme may run in hundreds of crores. Commenting on the development, Chairman and Managing Director R K Chhibber expressed his profound gratitude to the government of J&K for their complete, consistent support in implementation of the recommendations of J&K SLBC.
Further he conveyed his satisfaction on the RBI’s direction with regard to providing relief to the borrowers affected by the recent disturbances in the union territory of J&K and hoped that it will lift the morale of affected businessmen up and reinvigorate the business in the region.