Srinagar: The State government Wednesday rolled out the Chief Minister’s Business Interest Relief Scheme announced during the Budget to provide relief to all the affected borrowers whose accounts were re-structured post 2014 floods and subsequent unrest of 2016.
By virtue of a government order, first tranche of funds for the current quarter upto 31st March 2018 was released to the J&K Bank (Convener State Level Bankers Committee) as the contribution of the State Government towards one-third interest of all the affected borrowers.
Though no budgetary provisions were available for the current financial year ending March 2018, the government in order to provide succor to the business community of the state decided to make the additional expenditure.
Commenting on the decision of the State Government, Parvez Ahmed, Chairman and CEO, J&K Bank who is also Convener J&K SLBC said, “We are thankful to the Chief Minister, Finance Minister and Principal Secretary Finance for the timely release of funds as it will not only help the banks in the state to obviate NPA build up but will also provide relief to the bank borrowers who are struggling to keep their business afloat post flood and civil unrest.”
The chairman added that the collateral benefit of the benevolent move of the State Government is that a culture of recovery and timely payment of bank dues will be promoted as only those borrowers are eligible for credit of one-third interest amount who have regularly been paying their two-third interest in their respective bank accounts.
The representatives of the Business and Trade Associations hailed the decision of the State Government and termed the move as pivotal in hand-holding the genuine borrowers in fragile times, thereby fostering the growth of Business environment in the State, while also providing a safety-net to the lending Banks.