Jammu & Kashmir Government Guarantees Depositor Security Amid Strategic Liquidation of SCARD Bank

The Jammu & Kashmir administration has formally assured depositors of the State Cooperative Agriculture and Rural Development Bank (SCARD Bank) that comprehensive safeguards will be implemented following the Council of Ministers' approval of the institution's liquidation. This decisive action, authorized on December 3, was officially disclosed by Cooperatives Minister Javed Ahmed Dar in a written response to legislative inquiry from MLA Aga Syed Muntazir Mehdi. The move represents a significant restructuring within the region's cooperative financial sector, aimed at addressing systemic vulnerabilities while prioritizing the protection of public funds. Analysis indicates this liquidation is a calculated measure to stabilize the rural banking framework, potentially mitigating long-term financial risks. The government's explicit commitment to depositor security underscores a strategic effort to maintain public confidence during institutional transition. This development signals a formal shift in J&K's agricultural and rural development financing architecture, with implications for future cooperative banking policies and economic governance in the region.