Special J&K SLBC recommends extension in repayment of loans by 90 days - What J&K Bank MD RK Chhibber said

Special SLBC convened by J&K Bank was held today in Srinagar to address difficulties faced by the borrowers and the banks due to disruption in business in the J&K state since August 2019. In his welcome address, the Chairman and MD, J&K Bank R K Chhibber apprised the house about the circumstances in which banks are operating in the state and briefed the meeting about the steps needed to address the regulatory concerns.

The meeting was presided over by Chief Secretary J&K Government B V R Subrahmanyam (IAS) and attended by Financial Commissioner (Finance) Dr. Arun Kumar Mehta (IAS), Principal Secretary (Housing and Urban Development) Dheeraj Gupta (IAS), Principal Secretary (Planning and Development) Rohit Kansal (IAS), Principal Secretary (Industries and Commerce) NK Choudhary (IAS), Chairman and Managing Director J&K Bank (Convener J&K SLBC) RK Chhibber, Deputy Secretary (DFS, MoF, GoI) AK Dogra, Regional Director Reserve Bank of India Thomas Mathew, and General Manager of State Bank of India Binod Kumar Mishra.

Deputy Commissioner Srinagar Shahid Iqbal Choudhary and other senior functionaries of the Government, RBI, NABARD, banks operating in the state notably SBI, PNB, Allahabad Bank, HDFC, Axis, J&K Grameen Bank, EDB, Cooperative Banks, etc, Lead District Managers, line departments, were also present on the occasion.

SLBC after reviewing the overall situation in the J&K State recommended an extension of repayment period by up to 90 days besides relaxation in income recognition and asset classification norms for favourable consideration of Reserve Bank of India. Also, SLBC noted the Master Circular of RBI on Relief Measures by Banks in Areas affected by Natural Calamities and also recommended the same for its applicability in the light of the current situation in J&K State.

SLBC also sought the applicability of the special dispensation to all banks operating in J&K including Regional Rural Banks and Cooperative Banks in the meeting.

These steps are expected to provide the much-needed relief to the borrowers as well as the banks operating in the state and will help them tide over the difficulties arising due to the current situation. However, these recommendations put forward by the SLBC are subject to the approval by the Reserve Bank of India.

Earlier, in his welcome address, the Chairman and MD, J&K Bank R K Chhibber apprised the house about the circumstances in which banks are operating in the state and briefed the meeting about the steps needed to address the regulatory concerns.

The meeting concluded with vote of thanks proposed by J&K Bank.