THIRUVANANTHAPURAM: The Cabinet has approved the M S Sreeram report recommending the merger of 14 District Cooperative Banks (DCBs) and state cooperative bank to form the Kerala Cooperative Bank. It was on April 28 the report was submitted to the government. In the wake of the approval of the report, the government will take up the issue with the Reserve Bank of India (RBI) and NABARD.
An action committee headed by V R Ravindranath, former general manager NABARD has been formed to formulate a practical plan for the proposed bank.The Cabinet observed that the Kerala Cooperative Bank could help utilise the fund parked in the cooperative sector. The credit-deposit ratio will be raised and interest rate is brought down.
The Cabinet noted following the state government’s move, the Punjab Government has also started efforts to merge the cooperative banks. Maharashtra and Uttar Pradesh have also evinced interest and contacted the government.