THIRUVANANTHAPURAM: The proposed ‘Kerala Bank’ will do away with user charge for most of the banking services, said Cooperation Minister Kadakampally Surendran in the Assembly. Along with low interest loan rates, the new bank will also be able to provide loans in more areas to attract the customers.
With the RBI issuing in-principle nod for the Kerala Bank, the government has decided to formally merge the 14 district cooperative banks and the Kerala State Cooperative Bank. With this, the three-tier short-term cooperative institutions will move to a two-tier system. With reduction in one tier, the interest loan rate can also be cut down.
Replying to the question raised by Anil Akkara MLA, the minister said the merger will be as per the 19 conditions set by the RBI. According to the RBI, the government should complete the procedures for the merger by March 31, by following all financial and legal norms and approach the RBI for the final approvals and licences. Various steps are being taken up to initiate modern facilities in the Kerala Bank.