Srinagar: The Kashmir Chamber of Commerce and Industry (KCCI) has called for urgent reforms in banking policies to support Micro, Small, and Medium Enterprises (MSMEs) and startups in Kashmir. The demand was made during a Town Hall Meeting organised by the Reserve Bank of India (RBI) in Srinagar on Tuesday.
A KCCI delegation, led by Senior Vice President Ashiq Hussain Shangloo, along with Secretary General Faiz Bakshi and Executive Committee members Gowhar Maqbool and Dr Touseef Ahmad Bhat, engaged in extensive discussions with RBI Regional Director Chandrashekhar Azad.
They raised concerns over inadequate financing mechanisms that continue to hinder business growth in the region.
The delegation highlighted that banks operating in Kashmir often cite RBI guidelines to justify complex procedural requirements, which they argued conflict with Supreme Court directives on business financing accessibility. The KCCI also pointed to Kashmir’s alarming urban youth unemployment rate of 32.8 per cent in the 15-29 age group, as the Ministry of Statistics and Programme Implementation (MoSPI) reported, calling for extraordinary measures to support entrepreneurship.
KCCI criticised the banking sector’s failure to provide adequate support under schemes like the Prime Minister’s Employment Generation Programme (PMEGP) and noted that public sector banks in Kashmir have been particularly reluctant to lend to the priority sector. The Chamber also questioned discrepancies between official reports on MSME growth and employment generation and the realities businesses face on the ground.
One of the key proposals put forward by KCCI was the establishment of a full-fledged RBI office in Kashmir.
The RBI Regional Director assured the delegation that their concerns would be conveyed to the central office.
KCCI welcomed the interactive session and appreciated the RBI for facilitating discussions on the pressing financial challenges confronting Kashmiri businesses.
