The assistance was given to the shopkeepers of Reshi Bazaar, Anantnag, Shalimar and Srinagar, an official spokesman said.
These shopkeepers had lost their shops and goods in two separate devastating fire incidents recently.
The chief minister directed the administration to render all possible help to the shopkeepers in rebuilding their assets.
Mehbooba gave away seven cheques of Rs 50,000 each among the Reshi Bazar shopkeepers as well as the 16 Shalimar shopkeepers, the spokesman said.
He said the shopkeepers put up some demands before the chief minister like construction of rest rooms at Shalimar market, loss assessment of Reshi Bazaar shopkeepers and release of balance amount of flood relief in their favour.