Amid pandemic, J&K SC ST & BC Dev Corporation seeks loan recoveries

MD warns outsourced personnel of termination for non-performance

MD warns outsourced personnel of termination for non-performance


CCIK seeks withdrawal of circular, asks Govt to provide relief

Srinagar, June 09 (KNS): At a time when a common man is suffering to make both ends meet due to around two-and-half-month nationwide lockdown, the Jammu and Kashmir SC, ST & BC Development Corporation Ltd. has issued a circular asking the outsourced personnel to make the recovery of the payments from borrowers.
The Corporation has also warned outsourced personnel, who work on temporary basis, of the termination of their services, for their non-performance.
Notably, The Corporation provides subsidy with Bank Loan Assistance under Bank Tie-up scheme and loans on concessional rates of interest under Direct Financing Scheme in collaboration with National level Finance and Development Corporations of the Govt. of India, to the target group persons for establishment of income generating units in various trades/activities, to improve their socio-economic standard.
In a circular, the Managing Director of the Corporation has asked the Financial Advisors/CAOs to review the performance of the outsourced personnel responsible for making recoveries of the loan repayments from borrowers. The MD has also directed the financial advisor to fire the non-performing outsourced personnel immediately so that expenses are incurred judiciously and result-oriented.
In this regard, the General Managers and Deputy General Managers of both Kashmir and Jammu divisions have also been asked to monitor the recoveries of each district on a daily basis and report the progress to the office on a weekly basis.

“Any leniency in the matter shall be dealt in accordance with non-performing standards and held liable for the loss made to the Corporation,” read the circular.
Managing Director of the Corporation Bharat Bhushan said the circular is issued on a regular basis to make the recoveries.
“The outsourced personnel have not been able to make a single recovery even from those borrowers who are willing to pay,” he said.
The Managing Director said they have 70 outsourced personnel assigned to make recoveries but their performances have been very dismal.
While admitting that pandemic has hit the earnings of the borrowers, the MD said the Corporation has already written to the Government of India seeking a moratorium period of six months to the borrowers.
“We understand that during pandemic recovery can be difficult which is why we have also written to the Government of India seeking a moratorium for borrowers. As soon as we receive any reply, we will pass it onto the borrowers.”
Notably, The Reserve Bank of India (RBI) had announced an extension of the moratorium on loan EMIs by three months, i.e. till August 31, 2020. The earlier three-month moratorium on the loan EMIs was ending on May 31, 2020.
Meanwhile, in a separate press statement, The Associated Chambers of Commerce and Industry- Kashmir (CCIK), has expressed serious concern over the issuance of the circular terming it as 'misplaced, ill-timed and unwise'.
In a statement issued to KNS, Secretary General CCIK Tariq Rashid Ghani said they wonder under whose directions has such a circular being issued.
CCIK has urged the authorities to withdraw the circular forthwith.
The business chamber further said at a time when the government should provide relief to the affected borrowers, it has started making recoveries.
“The need and the demand of the prevailing circumstance is that borrowers may not be harassed for repayment of the loans as no income has been generated for over two months due to lockdown. It is also unfortunate that when RBI has already granted moratorium to the borrowers, the Corporation is swooping upon the poor citizens who can't even make both ends meet.”(KNS)


 

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