he Jammu & Kashmir State Cooperative Agriculture and Rural Development (SCARD) Bank Ltd. has, over a period of time, been experiencing persistent operational and financial challenges. These challenges have primarily arisen due to deficiencies in governance and internal control systems, weak loan recovery performance, and constraints in accessing refinance support from the National Bank for Agriculture and Rural Development (NABARD). Taken together, these factors have adversely impacted the financial health and normal functioning of the Bank.

The issues relating to the Bank have been examined in depth by the Cooperative Department in close consultation with NABARD. Based on its supervisory assessments, NABARD has advised a regulated, closely monitored, and structured course of action, with the primary objective of safeguarding the interests of depositors and other stakeholders, while ensuring an orderly, transparent, and legally compliant process. In pursuance of these recommendations, the Cooperative Department has  undertaken and 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. This exercise was aimed at verifying the authenticity of account holders and ensuring that the interests of genuine depositors are duly identified and protected in any future course of action.

It is further informed that the Government has approved the proposal relating to the liquidation of the J&K State Cooperative Agriculture and Rural  Development (SCARD) Bank Ltd., with specific directions that the Cooperative  Department shall work out a clear proposal for safeguarding the interests of the  depositors. Accordingly, the Department has formulated a practical, phased, and legally compliant line of action strictly in accordance with the provisions of the Jammu and Kashmir Cooperative Societies Act, 1989, with due care to ensure minimal inconvenience to depositors. The Department is presently awaiting the requisite prior sanction in writing  from NABARD  as mandated under section 74(4)  of the J&K Cooperative societies Act, 1989 to proceed further, which is expected shortly.

The Cooperative Department fully acknowledges the concerns and anxieties of depositors and assures them that protection of their interests remains its foremost priority.  All actions are being taken 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 the concerned departments of Jammu and Kashmir and regulatory institutions and reiterates its commitment to act responsibly, lawfully, and in a depositor-centric manner, in the larger public interest.