Srinagar, Mar 27: Finally some good news in these extraordinary times. The borrowers in Jammu and Kashmir have got a reason to smile as Jammu and Kashmir Bank will not deduct EMIs on all loans for the next three months considering the ongoing coronavirus pandemic that has rattled the entire globe.
The bank would do so while following the Reserve Bank of India directions issued this morning.
Terming the decision a major relief for the people of Union Territory, J&K Bank Chairman and Managing Director (CMD) R K Chhibber told The Kashmir Monitor that the bank will implement the RBI guidelines in letter and spirit.
“RBI directions will be fully implemented in Jammu and Kashmir. There shall be no EMI payment by beneficiaries of J&K bank for the next three months,” the J&K Bank CMD said.
He added the bank has started working to defer the repayment of loans during the period.
Sources said all loan periods would simply be extended by three months and borrowers shouldn’t worry about its effect on their credit history.
The Reserve Bank today permitted banks, NBFCs (including housing finance companies) and other financial institutions to defer term loan installments by three months.
RBI Governor Shaktikanta Das in a presser said that moratorium on term loans, deferment of interest payment will not result in downgrade of asset classification for financial institutions.
Meanwhile, Kashmir’s business community heaved a sigh of relief and termed the decision a succor to people.
“Kashmir has been witnessing meagre business activity for the last one year and the current lockdown will further adversely impact the business sector. So, this is a good initiative taken by RBI considering the current crisis in India,” said president, Kashmir Chamber of Commerce and Industries (KCCI) Sheikh Ashiq Ahmad.
He reiterated the chamber’s demand a comprehensive financial package for Kashmir to overcome the stress faced by traders last year.