Jammu: The Jammu and Kashmir government on Tuesday said it has approved the liquidation of the J&K State Cooperative Agriculture and Rural Development (SCARD) Bank.
In a written reply to the Assembly, minister-in-charge for cooperatives Javed Ahmed Dar said the decision was taken by council of ministers on December 3, 2025. He was responding to a question by PDP MLA Aga Syed Muntazir Mehdi.
“As of now, the department has not formulated any proposal for the rehabilitation, absorption or provision of compensation to the employees working in the J&K SCARD Bank,” Dar said.
However, he assured that the interests of employees will be safeguarded in accordance with the provisions of the Jammu and Kashmir Cooperative Societies Act, 1989, and the rules framed thereunder, subject to future policy decisions or instructions of the government.
Dar further said that measures have been initiated to safeguard the interests of depositors and borrowers of the SCARD Bank.
“The issues affecting the bank have been examined in detail by the department in consultation with NABARD, and a structured, closely monitored and legally compliant course of action has been advised to ensure an orderly and transparent process,” he said.
As part of these measures, a special Know Your Customer (KYC) verification exercise covering all depositors and loaners across branches, including the head office and regional offices, has been completed to verify the authenticity of accounts and protect the interests of genuine depositors.
The minister said that the council of ministers has approved the proposal relating to the bank with specific directions to safeguard depositor interests. “A phased and legally compliant course of action, in line with the Jammu and Kashmir Cooperative Societies Act, 1989, has been formulated to ensure minimal inconvenience to depositors. The department is presently awaiting the requisite prior sanction from NABARD to proceed further,” he said.