Slump in tourism trade: Banks mulling package for revival of businesses post Pahalgam terror attack
Srinagar: In a major step towards economic recovery, the Union Territory Level Bankers Committee (UTLBC) is mulling a package for revival of businesses affected by Pahalgam terror attack and Indo- Pak conflict during April and May this year.
The ULBC- the apex level forum of bankers / financial institutions operating in J&K- passed resolutions during its 16th meeting held on June 21 for revival/ rehabilitation of the affected businesses.
According to record note of the UTLBC meeting, the committee passed a resolution that J&K government shall declare the incidents of Pahalgam terror attack and Indo–Pak conflict as disturbances across UT of Jammu & Kashmir and issue a notification in this regard.
It also passed a resolution that rehabilitation plan for revival of businesses affected due to the terror incident and conflict thereon, to be invoked under chapter VII (RIOTS AND DISTURBANCES) of RBI Master Direction FIDD.CO.FSD.BC No.9/05.10.001/2018-19 dated October 17, 2018.
The UTLBC further resolved to form a committee, comprising members from three major banks, for finalizing the parameters of the proposed rehabilitation/ revival plan.
As per minutes of the meeting, the committee was informed about the financial stress caused to borrowers in tourism sector and in border areas due to Pahalgam attack.
“The House was apprised about the impact of the Pahalgam terror attack that took place on April 22, 2025 and Indo-Pak conflict thereon, on the economic pursuits and businesses across J&K UT that resulted in financial stress to all the sectors, especially the borrowers related to tourism sector and living in border area,” reads record note of the meeting.
The UTLBC was also informed that delegations of various trade associations/ bodies approached government authorities and J&K Bank management seeking rehabilitation and revival package for affected businesses. (KNO)
