Srinagar, Jan 10: The government has directed banks operating in J&K to significantly increase credit disbursement under various employment generation schemes, expressing concern over a sharp year-on-year decline in sponsorship and lending.
As per the minutes of the 17th meeting of the Union Territory Level Bankers’ Committee (UTLBC) held on November 29, 2025, the House was informed that against the sponsorship of 12,977 cases, banks in J&K disbursed Rs 389.56 crore in favour of 10,139 beneficiaries under different employment generation schemes during the first half (H1) of the financial year 2025-26.
The disbursement included Rs 114.90 crore for 1918 beneficiaries under the Prime Minister’s Employment Generation Programme (PMEGP), Rs 254.11 crore for 7386 beneficiaries under the National Rural Livelihood Mission (NRLM), Rs 0.79 crore for 69 beneficiaries under PMWMY, Rs 8.48 crore for 581 beneficiaries under the Credit Card Scheme (CCS) for Artisans and Weavers, and Rs 11.28 crore for 185 beneficiaries under the Jammu and Kashmir Rural Employment Generation Programme (JKREGP).
For the financial year 2025-26, a target has been set to cover 36,191 beneficiaries involving a total credit of Rs 1617.86 crore under PMEGP, NRLM, and JKREGP.
However, targets for PMWMY and the Credit Card Scheme for Artisans and Weavers for the Jammu division are yet to be received from the Directorate of Handicrafts and Handloom, Jammu.
“Chairing the meeting, the Chief Secretary noted with displeasure a year-on-year decline of 53 percent in sponsorship of cases, 40 percent in disbursement of cases, and 44 percent in overall credit disbursement,” a note of minutes of the meeting reads.
The Chief Secretary observed that sponsoring departments and agencies had not performed up to the mark, which adversely impacted banks’ performance in credit disbursement and beneficiary coverage under employment generation schemes.
He termed the progress under PMEGP as particularly unsatisfactory.
The Chief Secretary directed the banks to provide “hassle-free” financing for youth-centric and enterprise-focused programmes, including PMEGP, JKREGP, NRLM, PMWMY, Credit Card Scheme for Artisans and Weavers, PM Vishwakarma, Mission YUVA, and homestay development schemes.
These initiatives form a key part of the administration’s broader strategy to expand self-employment and livelihood opportunities in J&K.
The meeting also decided that sponsoring agencies must substantially enhance the sponsorship of cases, stressing that their role is as crucial as that of banks in achieving targets set under the Annual Credit Plan (ACP).
The banks were further directed to reduce the pendency of cases, especially those pending for more than 60 days, and to ensure that no case remains pending beyond the stipulated turnaround time (TAT).
