Excelsior Correspondent
JAMMU, May 26: The Indian Chamber of Commerce (ICC) Jammu, under the leadership of its Chairman Rahul Sahai, submitted a detailed memorandum to Chander Shekhar Azad, Regional Director, Reserve Bank of India (RBI), Jammu, Kashmir & Ladakh, during the 66th Empowered Committee meeting today.
The memorandum highlighted the pressing economic and sectoral concerns faced by MSMEs in the Union Territory in light of the recent war-like situation. The representation applauded the courage of the Armed Forces and the leadership of the PM for standing strong in difficult times. However, it emphasised that the ongoing uncertainty and threat of recurrence have deeply shaken the MSME sector and the broader business community across Jammu and Kashmir.
The fallout includes widespread damage to homes in border areas, business closures, grounding of flights and trains, exodus of labour, a collapse of the tourism industry, and an alarming decline in business activity and income. The concerns were raised over unsecured banks credit limits in case of “Act of War ” situation, continued interest charges without proper economic activity, pending GST refunds in treasuries and Government scheme payments.
In its memorandum, ICC Jammu proposed several critical interventions. These include directing IRDAI to extend war-risk insurance coverage for J&K properties, and ensuring banks refrain from blocking MSME accounts or classifying them as unsecured due to current instability.
The Chamber urged banks to develop new and simplified financial products such as loans against pending Ayushman Bharat dues, solar financing for MSMEs, and hassle-free loans against property in these difficult times. Regarding treds Sahai suggested audit that why buyers are not registering on treds platforms of RXIL, M1 Exchange etc. It called for liberal renewal of credit limits, issuance of special stress loans, restoration of ATM withdrawal limits to pre-war levels, six-month interest reimbursements as provided during COVID, and region-specific RBI relaxations in credit restructuring and working capital support and Cibil scores.
The ICC Jammu recommended immediate cyber audits of banking systems and creation of a dedicated Cyber response team by banks, safety of public deposits and bank lockers in war-prone situations. It emphasised the urgent need for the RBI’s leadership to safeguard MSMEs and restore economic confidence in the region.
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