Government Directs Banks in J&K to Increase Credit Disbursement for Employment Generation Schemes

In a recent development, the government has issued directives to banks operating in Jammu and Kashmir to significantly boost credit disbursement under various employment generation schemes. This comes in light of a concerning decline in sponsorship and lending activities.

Meeting Details

According to the minutes of the 17th meeting of the Union Territory Level Bankers’ Committee (UTLBC) held on November 29, 2025, it was highlighted that banks in J&K disbursed Rs 389.56 crore for 10,139 beneficiaries in the first half of the financial year 2025-26. This amount was distributed across different employment generation schemes, including the Prime Minister’s Employment Generation Programme (PMEGP), National Rural Livelihood Mission (NRLM), PMWMY, Credit Card Scheme for Artisans and Weavers, and Jammu and Kashmir Rural Employment Generation Programme (JKREGP).

Targets and Concerns

For the ongoing financial year, a target has been set to cover 36,191 beneficiaries with 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 in the Jammu division are pending.

The Chief Secretary expressed dissatisfaction over a significant decline in sponsorship and lending activities compared to the previous year. There was a 53 percent drop in sponsorship, 40 percent decrease in disbursement, and 44 percent reduction in overall credit disbursement.

Call to Action

The Chief Secretary emphasized the need for banks to streamline financing processes for youth-centric and enterprise-focused programs like PMEGP, JKREGP, NRLM, PMWMY, and others. These initiatives play a vital role in expanding self-employment and livelihood opportunities in J&K.

Furthermore, sponsoring agencies were urged to increase their participation to meet the targets set under the Annual Credit Plan (ACP). Banks were instructed to expedite the processing of cases and ensure timely disbursement of funds to beneficiaries.

Conclusion

Overall, the government’s focus on enhancing credit disbursement for employment generation schemes reflects its commitment to fostering economic growth and creating sustainable livelihoods in Jammu and Kashmir. By aligning efforts between banks, sponsoring agencies, and government bodies, the region can achieve higher levels of financial inclusion and entrepreneurship.