The last date for receiving application and deduction of premium from farmers’ accounts was July 31, 2019.
Chief Minister Pinarayi Vijayan said there are many letterhead organisations in the state and the proposed Kerala Bank is a not a place for them.
As the first step, 2,631 cooperative societies have been selected.
The RBI has also imposed a penalty of Rs 2 lakh on National Urban Co-operative Bank, Bahraich for non-filing of a return on asset and liabilities.
Cooperative banks play a significant role in paddy procurement and disbursements of short term agricultural loans.