(MENAFN- Kashmir Observer) Srinagar- In a significant move that brings much-needed relief to the business community, J&K Bank's Managing Director & CEO, Amitva Chatterjee, has promised to end the bank's controversial“Name and Shame” policy and other practices that have caused undue distress to borrowers, particularly Micro, Small, and Medium Enterprises (MSMEs) in the region.
This assurance came during a productive marathon meeting between Chatterjee and a high-level delegation from the Federation of Chambers of Industries Kashmir (FCIK), led by Shahid Kamili. The meeting also included J&K Bank's Executive Director Sudhir Gupta, General Managers Narjey Gupta, Rajesh Tickoo, Shabir Ahmad, Deputy General Manager Nishikant Sharma, and other key bank officers.
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For years, J&K Bank publicly shamed borrowers struggling with loan repayments by publishing SARFAESI notices and e-auction advertisements in newspapers. This practice severely damaged the reputations of businesses and individuals, often hindering their ability to secure future financial support or business opportunities. FCIK has long criticized this approach, asserting that it disproportionately affects MSMEs, many of which are already under significant financial strain due to external factors beyond their control.
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FCIK has consistently advocated for a more constructive approach, calling for the bank to adhere to government-mandated revival and restructuring mechanisms. These measures, as outlined in the Government of India's 2015 Notification and the Reserve Bank of India's 2016 Guidelines on MSME Rehabilitation, are designed to provide businesses with a fair opportunity to recover, rather than prematurely classifying them as Non-Performing Assets (NPAs). The Supreme Court of India has also upheld the principle that MSME accounts should not be hastily declared NPAs without proper due process.
In light of FCIK's concerns, Chatterjee assured that J&K Bank would discontinue the use of SARFAESI notices and e-auction advertisements for public shaming, especially for MSMEs. He confirmed that the premature classification of MSME accounts as NPAs would cease, and all cases would be handled in full compliance with government and RBI guidelines. Additionally, the MD emphasized that the bank would prioritize open, constructive dialogue with struggling MSMEs, offering viable restructuring and repayment options to help businesses recover.
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FCIK has welcomed this positive shift in the bank's approach, commending Chatterjee for his cooperative and non-confrontational stance on debt resolution. The Federation has stressed that J&K Bank should prioritize the revival of businesses over liquidation, giving MSMEs a fair chance to rebuild and avoid forced closures.
This decision marks a crucial turning point in the bank's approach to MSME borrowers, fostering financial stability and reinforcing principles of rehabilitation and financial inclusion.
To further streamline the process of accessing credit and financial services for local businesses, FCIK presented a 25-page charter of demands outlining key measures to address the unique needs of the region's entrepreneurs.
Recognizing the significant challenges facing local businesses, FCIK proposed a three-pronged strategy for resolving the growing NPA crisis. The delegation urged J&K Bank to adopt a more inclusive and structured approach that would ensure the survival and growth of viable enterprises.
FCIK has expressed optimism that, under Chatterjee's leadership, J&K Bank would proactively work with stakeholders to resolve the NPA issue and support the continued growth of MSMEs in Jammu and Kashmir.
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