What changed
The previous extension of concessions/credit relaxations for borrowers in Jammu & Kashmir, which was set to expire on March 31, 2009, has now been extended for an additional year. The new deadline for these relaxations is March 31, 2010.
What it means for you
Banks must continue to offer the same credit relaxations and concessions to J&K borrowers as specified in the April 2004 circular, without any changes in terms. This ensures ongoing support for trade and industry in the region, but lenders need to update their internal systems and branch instructions to reflect the extended validity period.
What you must do
- Issue fresh instructions to all controlling offices and branches in J&K to continue the existing credit relaxations until March 31, 2010.
- Ensure that the concessions outlined in the April 21, 2004 circular remain in effect for all eligible borrowers in the state.
- Monitor compliance and maintain records of all accounts availing these relaxations for audit and regulatory review.
Who it affects
All scheduled commercial banks (excluding RRBs) operating in Jammu & Kashmir, Borrowers and customers in Jammu & Kashmir availing credit relaxations, Trade and industry entities in the state
Which specific concessions are being extended?
The circular does not list the concessions in detail but refers to the relaxations laid down in the April 21, 2004 circular. Banks should refer to that original circular for the exact terms.
Does this apply to Regional Rural Banks (RRBs)?
No, the circular explicitly excludes RRBs. It is addressed only to all scheduled commercial banks.
What happens after March 31, 2010?
The circular does not specify any further extension. Banks should plan for the possibility that the relaxations may not be renewed after that date.