Free Press Journal

RBI extends trade relaxation facility to J&K to March 2016


Mumbai: To ensure larger flow of credit to trade and industry in Jammu & Kashmir, RBI has extended relaxations given to the state till March 2016.

“It has been decided that the concessions/credit relaxations to borrowers/customers in the state of Jammu & Kashmir, will continue to be operative up to March 31, 2016,” it said in a notification.

The state has been getting trade relaxations since April 2003. Since, then the RBI has periodically extended the trade relaxation facility to the state.

Trade relaxations include increased working capital facilities to the state by banks, with relaxation up to 50 per cent for small borrowers; need based increased working capital laon to borrowers without delay; encouraging finance against accepted usance bills (hundies); concession to service tariffs for remittances.

The banks may also honour small fixed deposit receipts, say up to Rs 10,000 each to Kashmiri migrants at the designated branches without verifying details from branch of origin.