Convener News Desk
Srinagar, Jan 2: The Jammu and Kashmir government has approved the proposal for the liquidation of the J&K State Cooperative Agriculture and Rural Development (SCARD) Bank Ltd., directing the Cooperative Department to put in place a clear, phased, and legally compliant mechanism to safeguard the interests of depositors, with the final process set to move forward after mandatory written approval from NABARD.
The Cooperative Department has formulated a practical and phased line of action strictly in accordance with the provisions of the Jammu and Kashmir Cooperative Societies Act, 1989, ensuring minimal inconvenience to depositors. The Department is currently awaiting the requisite prior sanction in writing from the National Bank for Agriculture and Rural Development (NABARD), as mandated under Section 74(4) of the Act, which is expected shortly.
The SCARD Bank has, over a period of time, been facing persistent operational and financial challenges arising from governance and internal control deficiencies, weak loan recovery performance, and constraints in accessing refinance support from NABARD. These factors have collectively impacted the Bank’s financial health and impaired its normal functioning.
The issues were examined in depth by the Cooperative Department in close consultation with NABARD. Based on its supervisory assessments, NABARD recommended a regulated, closely monitored, and structured course of action aimed at ensuring an orderly, transparent, and legally compliant process, with the protection of depositors and other stakeholders as the primary objective.
In pursuance of these recommendations, the Cooperative Department has completed a special Know Your Customer (KYC) verification exercise covering all account holders—including depositors and loanees—across all branches of the Bank, including the Head Office and Regional Office. The exercise was undertaken to verify the authenticity of account holders and to clearly identify genuine depositor claims for protection in any future course of action.
Acknowledging the concerns and anxieties of depositors, the Cooperative Department has reiterated that safeguarding depositor interests remains its foremost priority. All actions are being undertaken with due diligence, transparency, and appropriate regulatory oversight to ensure that depositor claims are addressed in a fair, systematic, and orderly manner.
The Cooperative Department remains in close coordination with concerned departments of the Jammu and Kashmir government and regulatory institutions and has reaffirmed its commitment to act responsibly, lawfully, and in a depositor-centric manner in the larger public interest.
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