The Jammu and Kashmir State Cooperative Agriculture and Rural Development Bank has been facing prolonged financial and operational stress due to weak governance, poor loan recovery, and limited access to NABARD refinance, affecting its overall functioning, media reports say.
After detailed review in consultation with NABARD, the Cooperative Department initiated a closely monitored and legally compliant course of action to protect stakeholders. A special KYC verification of all depositors and loanees was completed across branches to identify genuine claims.
The government has approved liquidation of the bank, with clear directions to safeguard depositors. The department has prepared a phased action plan under the J&K Cooperative Societies Act, 1989, and is awaiting mandatory NABARD approval to proceed.
