Jammu and Kashmir Government Approves SCARD Bank Liquidation
The Jammu and Kashmir government has officially approved the liquidation of the J&K State Cooperative Agriculture and Rural Development (SCARD) Bank. This decision was made by the council of ministers on December 3, 2025, as confirmed by minister-in-charge for cooperatives, Javed Ahmed Dar.
In response to a query by PDP MLA Aga Syed Muntazir Mehdi, Dar stated that there are currently no formulated proposals for the rehabilitation, absorption, or compensation of employees working at the J&K SCARD Bank. However, he assured that employee interests will be protected in accordance with the Jammu and Kashmir Cooperative Societies Act, 1989, and relevant regulations, pending future government directives.
Dar emphasized that steps have been taken to safeguard the interests of SCARD Bank depositors and borrowers. The department, in consultation with NABARD, has thoroughly examined the bank’s challenges and devised a structured and transparent action plan to address them.
One of the initiatives includes a comprehensive Know Your Customer (KYC) verification process for all depositors and borrowers across bank branches to validate account authenticity and ensure genuine depositor protection.
The council of ministers has given specific instructions to safeguard depositor interests, with a phased and compliant approach in line with the Jammu and Kashmir Cooperative Societies Act, 1989. The department is awaiting NABARD’s approval to proceed further with the outlined plan.
Overall, the government is committed to minimizing inconvenience to depositors and ensuring a smooth process during the SCARD Bank liquidation. Rest assured, the interests of all stakeholders will be prioritized throughout this transitional period.
