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Kerala Bank: Government to win confidence of PACS

The state government has started consultation with primary agricultural credit cooperative societies to rope in their support for forming the Kerala Bank.

Published: 22nd January 2019 01:26 AM  |   Last Updated: 22nd January 2019 07:57 AM   |  A+A-

Commuters walk past a bank sign along a road in New Delhi (Photo | Reuters)

Image used for representational purpose only. (File | PTI)

Express News Service

THIRUVANANTHAPURAM:  The state government has started consultation with primary agricultural credit cooperative societies to rope in their support for forming the Kerala Bank. Sources told Express the Cooperative Department will hold meetings of PACS in all districts to explain the features of the new bank. “The consultations are aimed at allaying their fears and concerns. Also, they will get to know about the products and services which they could offer joining the Kerala Bank network. They will not be able to offer such a wide range of services in the present situation,” they said.

A preliminary meeting of PACS conducted in Thiruvananthapuram evoked good response, according to the Cooperative Department. The Kerala Bank is formed by merging the State Cooperative Bank (SCB) and 14 district Cooperative Banks (DCBs). Meanwhile, staff organisations of UDF-aligned district cooperative banks, have conveyed their support for the Kerala Bank. This has come as a relief for the government. The general body meetings of all DCBs have to approve the merger proposal with two-third majority before March 31.

No to NABARD directions 
The government will write to the NABARD expressing its inability to obey the latter’s latest directions on the merger proposal. NABARD had asked the government to ensure the support of the non-banking cooperative societies for the merger. “These societies are associate members and do not have a role in the merger as per the cooperative law. The demand is against the cooperative structure,” said the draft of the letter to be sent to NABARD.

The government will also object to the demand to link the voting rights with the share holding. “The government can only go by the cooperative principle of one vote for one member. It cannot be increased as per the value of shares held by a member,” it said.



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