Jammu (J&K), Sept 18: A severe financial crisis has gripped thousands of depositors of the Jammu and Kashmir State Cooperative Agriculture and Rural Development (SCARD) Bank, who are unable to access their matured savings as the bank fails to release Fixed and Recurring Deposits worth crores of rupees.
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Depositors in Distress
Since April 2025, FDs and RDs of nearly 12,000–15,000 depositors have matured, but payments remain stalled. The affected include farmers, ex-servicemen, and poor rural families across 24 branches in Jammu division. Many say they are unable to fund marriages, pay medical bills, or rebuild homes damaged by recent floods. Reports have emerged of some depositors attempting extreme steps out of desperation.
Bank’s History and Role
Established in 1962 under the J&K Cooperative Societies Act, SCARD Bank was created to provide long-term and medium-term loans to farmers. Over time, it diversified to accept deposits like FDs and RDs, positioning itself as a lifeline for rural financial inclusion. Its symbiotic relationship with NABARD enabled credit for farm mechanisation, dairy, horticulture, irrigation, and allied activities.
Bankruptcy and Liabilities
According to sources, mismanagement and wrong investments have pushed the bank into bankruptcy. Liabilities in Jammu division alone have ballooned to nearly Rs 165 crore, with 80% of depositors from this region now left in limbo. The absence of RBI regulation over SCARD Bank means depositors cannot even rely on the usual Rs 5 lakh deposit insurance safety net.
Bank’s Response
In a circular dated Aug 8, 2025, Managing Director-cum-CEO of SCARD Bank stated that decisions on deposit payments would only be made after consolidation of audit reports by the Registrar of Cooperative Societies (RCS), NABARD, and J&K Bank, a process expected to take at least two months. The circular asked branch heads to “assure depositors that their savings are safe and there is nothing to panic about.”
Government Action
The Cooperative Department has directed that all operational and financial records be centralized at the head office in Jammu/Srinagar, holding the MD personally accountable for their safety. Meanwhile, depositors have approached ministers and senior officials seeking intervention. While authorities have promised action, concrete relief remains elusive.
Uncertain Future
With no clarity on when they will receive their money, depositors remain caught in uncertainty. As one farmer lamented, “Our savings of decades are locked. We trusted the cooperative bank, but today we cannot even arrange marriages or pay hospital bills.” For now, thousands of families continue to wait anxiously, hoping for justice and the return of their hard-earned savings.
- Total liability: Around Rs 165 crore in Jammu division
- Affected depositors: 12,000–15,000 across 24 branches
- Main depositors: Farmers, ex-servicemen, rural poor
- Insurance cover: Not applicable (outside RBI’s purview)
Source: Agencies
Labels: SCARD Bank, Jammu, Cooperative Bank Crisis, Depositors
Tags: #SCARDBank #Depositors #BankCrisis #Jammu #Farmers
Disclaimer: This article is a rewritten summary based on reporting by Agencies. Jammu News Portal does not assume responsibility for the accuracy of external content.
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