RBI okays this benefit to J-K bank borrowers hit by events after scrapping of Article 370

The bank, it said, has accordingly initiated the process to implement rehabilitation package to its borrowers.

Jammu and Kashmir Bank on Saturday said the RBI has permitted lenders to extend the rehabilitation benefits applicable to the borrowers affected by disturbance/events in the union territory of J&K. “The Reserve Bank of India (RBI) has allowed the banks to extend the rehabilitation benefits applicable to the borrowers affected by disturbance/events in the UT of J&K as per master directions on relief measures by the banks in areas affected by natural calamities,” Jammu and Kashmir Bank said in a filing to the BSE.

The bank, it said, has accordingly initiated the process to implement rehabilitation package to its borrowers. “This is in continuation to our letter…dated 5th November, 2019 regarding seeking a special dispensation addressing the issue of temporary asset impairment due to prevailing situation in J&K since August 5, 2019 from the RBI,” the filing said.

On August 5, the Centre had abrogated Article 370 provisions that gave special status to J-K and bifurcated the erstwhile state into union territories of Jammu and Kashmir, and Ladakh.