In view of ongoing crisis, the Kashmir Economic Forum (KEF) has demanded one year moratorium on repayment of loans by the affected borrowers. The forum has urged the state government to approach the Reserve Bank of India in this regard.
The forum said the banks in the state were deducting the EMI along with interest from the accounts of Valley-based borrowers, especially the businessmen who have been badly affected by the ongoing crisis.
Chairman KEF Showkat Chowdhary said the deduction of EMI was depleting the “borrowers’ deposits in the banks.” He said the businessmen are suffering losses on account of current unrest.
“There is no business at present and whatever the deposits the businessmen have in the banks are getting depleted by the deduction of EMI by the banks,” said Chowdhary.
He said the government had to safeguard the interest of the businessmen by taking up the issue with the RBI for one year moratorium period.
“It is government’s responsibility to secure the business community and the schools. Banks should take into consideration the current crisis. The businessmen are not in a position to pay EMI and interest,” said Chowdhary.
Chowdhary said the banks should keep these accounts under separate head till the economy gets revived. “If things return to normal, it would still take time for the business to stabilize,” said KEF.
The forum appealed the banks to “reverse the EMI deducted from the accounts from July, 2016.”
Hailing J&K Bank for “two year moratorium on loan repayment that was announced in the wake of 2014 floods for the affected businessmen”, the forum urged it to extend the period by one more year in view of the current situation in Kashmir.
“The flood affected businessmen are again in crisis now. Two year of moratorium period has expired in October. We urge J&K Bank to extend it by one more year,” said Chowdhary.
Chowdhay said the state and the central governments should also work for “final settlement” of the Kashmir issue so that such crisis doesn’t occur again.
“The ultimate solution to our ailing economy is resolution of Kashmir issue. Unless this issue is resolved, the economy won’t grow,” said Chowdhary.
