Srinagar, Mar 21 (KNN) The Kashmir Chamber of Commerce and Industry (KCCI) expressed significant concerns about inadequate financing for MSMEs and start-ups during a Reserve Bank of India town hall meeting held in Srinagar on Tuesday.
The chamber’s delegation, led by Senior Vice President Ashiq Hussain Shangloo, along with Secretary General Faiz Bakshi and Executive Committee members, met with RBI Regional Director Chandrashekhar Azad and senior executives from banks operating in Kashmir.
During the meeting, the KCCI highlighted Kashmir’s concerning 32.8 per cent unemployment rate among urban youth aged 15-29, as reported by the Ministry of Statistics and Programme Implementation.
The delegation pointed to a troubling disconnect between officially reported statistics on MSME development and the ground realities faced by local entrepreneurs.
According to the Chamber, banks frequently cite RBI guidelines to justify complex procedural requirements that appear to contradict Supreme Court directives on business financing accessibility.
The KCCI referenced findings from the Parliamentary Standing Committee that highlight systematic failures by banking institutions to support Kashmir’s emerging business ecosystem.
“Specific obstacles identified include severely limited access to the Prime Minister’s Employment Generation Programme (PMEGP), procedural complications in business establishment, and prohibitive financing conditions that disproportionately affect Kashmiri businesses,” the statement noted.
The Chamber also raised concerns about CIBIL score assessment methodologies in the region, advocating for contextual evaluation mechanisms that account for Kashmir’s unique economic circumstances.
Additionally, they criticised public sector banks for their minimal lending toward priority sectors in Kashmir.
As a solution, KCCI formally proposed establishing a full-fledged RBI office in Kashmir, arguing that the region’s geographic isolation and specific economic challenges justify a dedicated regulatory presence beyond current limited operations.
RBI Regional Director Azad assured the delegation their concerns would be communicated to the central office. The meeting concluded with a question-and-answer session, with KCCI expressing appreciation for the RBI’s initiative in organising the event.
(KNN Bureau)
