Credit relaxation to trade & industry in J&K extended till March 2016

To ensure larger flow of credit to trade and industry in Jammu & Kashmir and also bring appropriate changes in the monitoring mechanism, RBI has extended credit relaxations given to the borrowers and customers in 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.
“With a view to ensuring larger flow of credit to trade and industry in the State on the one hand and bringing about appropriate changes in the monitoring mechanism on the other, the position in regard to relaxations/concessions announced from time to time has since been reviewed and the following comprehensive package of concessions / relaxations is recommended for immediate implementation by banks operating in the State of Jammu and Kashmir,” RBI had said in its notification in 2003.
RBI has extended the trade relaxation facility to the state several times after its announcement.
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, according to the RBI notification.
Some of the other benefits include – for term credits, the banks may adopt a flexible and pragmatic approach as regards debt-equity ratio, especially for small projects; banks may review all irregular accounts within a time-frame of three months with a view to exploring the possibilities of regularising them through sanctioning additional working capital facilities; Liberal acceptance credit / LC facilities may be extended to facilitate purchases on credit etc.