Thiruvananthapuram

29°C

Haze

Enter word or phrase

Look for articles in

Last Updated Wednesday October 18 2017 09:31 AM IST

Kerala cooperative bank: govt nudges smaller coops to agree for merger

Text Size
Your form is submitted successfully.

Recipient's Mail:*

( For more than one recipient, type addresses seperated by comma )

Your Name:*

Your E-mail ID:*

Your Comment:

Enter the letters from image :

money Kerala govt is pushing for resolutions from the smaller cooperatives agreeing to a merger: File photo

Kannur: The Left Democratic Front government in Kerala is pushing hard for the formation of a Kerala cooperative bank. The government has ordered the district cooperative banks to immediately convene a general body meeting and pass a resolution to merge themselves to a state-level cooperative.

The proposed Kerala cooperative bank requires the permission of the Reserve Bank of India and the recognition of the district-level cooperatives. The bank is expected to be under the Nabard but the formation of the entity may be tangled in legal proceedings if the district-level cooperatives do not approve of it.

The government wants the district cooperative banks to convene their general body before September 28 or latest by September 30. The directive has been sent to the joint registrars, who are in charge since the administrative committees have been disbanded.

However, the associations affiliated to the opposition parties have warned against any hasty action from the part of the government. They are hopeful of thwarting any steamrolling of the government agenda in Kasaragod, Malappuram, Wayanad, Idukki and Pathanamthitta districts at least.

The opposition associations will declare their stand after a meeting chaired by KPCC chief M M Hassan in Thiruvananthapuram on September 19.

Detractors of a state-level entity argues that the creation of a monolith will lead to a loss of accessibility to the cooperative banks. The proposed bank may have the face of a nationalized bank once power is concentrated to a central office in Thiruvananthapuram, they say.

They want the government to strengthen the loss-making state cooperative bank instead of pushing for a new one by merging the existing district entities.

The government, on the other hand, wants a state-level cooperative whose combined assets could be used as collateral for availing of loans from agencies such as World Bank. The bank could be rolled out from next financial year if the district banks pass favorable resolutions.

Read more at: Latest in Business news | Now transfer money anywhere for free via Airtel Payments Bank accounts

The opinions expressed here do not reflect those of Malayala Manorama. Legal action under the IT Act will be taken against those making derogatory and obscene statements.

Email ID:

User Name:

User Name:

News Letter News Alert
News Letter News Alert