J&K Government Approves Liquidation of SCARD Bank: What Lies Ahead?

The Jammu and Kashmir government has decided to liquidate the J&K State Cooperative Agriculture and Rural Development (SCARD) Bank. Despite concerns, assurances have been made to protect employees' interests and safeguard depositors and borrowers. The process will adhere to the Jammu and Kashmir Cooperative Societies Act, 1989.

The Jammu and Kashmir government announced the liquidation of the J&K State Cooperative Agriculture and Rural Development (SCARD) Bank, following a decision by the council of ministers. This significant move was disclosed in a written reply by the minister-in-charge for cooperatives, Javed Ahmed Dar, during an Assembly session.

While no immediate plans for employee compensation or absorption have been formulated, Minister Dar assured that employees' interests will be maintained according to the rules outlined in the Jammu and Kashmir Cooperative Societies Act, 1989. The interests of depositors and borrowers are also being prioritized through various protective measures.

The liquidation process, closely monitored and legally compliant, includes a comprehensive Know Your Customer (KYC) verification to confirm the legitimacy of accounts. The department awaits authorization from NABARD to proceed, aiming to ensure minimal disruption for all stakeholders involved.

(With inputs from agencies.)