J&K CM will ask Centre to reschedule stressed loans

The Jammu and Kashmir government has assured the business community of the state that it will mediate on their behalf with the Union Finance Ministry and the Reserve Bank of India for rescheduling/restructuring of stressed loan accounts in Kashmir, a demand which the RBI dismissed earlier when it was approached by the J&K State Level Bankers Committee.

The SLBC had argued that there has been no business because of continuous shutdown for the past five months here. According to PDP sources close to Chief Minister Mehbooba Mufti, the latter decided to intervene for the business community after over two lakh accounts in different banks, especially in J&K Bank, were declared stressed.

The state government is mulling to declare Kashmir as riot hit as per RBI master directions. That would enable the account holders to qualify for the restructuring of loan accounts. CM Mehbooba is likely to take up the matter with Prime Minister Narindra Modi and Union Finance Minister Arun Jaitely.

There is da isturbing fiscal situation in Kashmir and, according to recent data, more than 2 lakh loan accounts have been declared stressed as the borrowers were unable to pay the equated monthly installments (EMIs) on time. According to the state Finance Ministry officials, the continuous unrest in the Kashmir Valley has turned more than Rs 7,000 crore loan amount into stressed loans.