J&K Bank's RAHAT One-Time Settlement: Applications Open Till 4 February, but the ₹5 Crore Ceiling Is Debated

J&K Bank's RAHAT Special One-Time Settlement (OTS) Scheme took effect on 5 November 2026 and accepts applications until 4 February 2027. It is meant for eligible stressed borrowers whose principal outstanding is up to ₹5 crore, according to a Greater Kashmir report of 12 November.

What is known

• Window: 5 November 2026 to 4 February 2027.
• Ceiling: principal outstanding up to ₹5 crore.
• Not in the report: the settlement formula, the full eligibility conditions and the application process. These have to be taken from the bank's own notice or a branch.

What business bodies say

Kashmir Chamber of Commerce and Industry president Javid Ahmad Tenga welcomed the scheme but said "businesses with outstanding liabilities above ₹5 crore should not be left out of the resolution process." Chambers want a wider, SBI-style framework; the earlier SBI mechanism covered eligible borrowings up to ₹50 crore. A businessman with a loan above the ceiling told the paper he would repay even if he had to sell property, and that "only a few hundred accounts are left in this category", a figure that is his own estimate. Business organisations have asked the J&K government, the bank's majority shareholder, to help arrange talks on a broader settlement mechanism.

What the bank says

A senior J&K Bank executive, who was not named, said OTS schemes must follow Reserve Bank of India regulations and be approved by the bank's board and competent authorities. He said depositors' interests are paramount: "Ultimately, this is depositors' money, and the Bank has a responsibility to safeguard it." He added that unlimited schemes are not feasible because an OTS means waiving part of the dues.

Why it matters to young Jammu

Young founders and first-generation borrowers are often exposed when a loan turns sticky. If you hold a loan with J&K Bank that is in default, ask your branch whether you qualify before 4 February 2027, and read the official notice rather than relying on summaries.

Sources: Greater Kashmir, 12 November 2026. Photo: J&K Bank's corporate headquarters, file photo, Greater Kashmir.