THIRUVANANTHAPURAM: The state government’s proposal to set up the Kerala Cooperative Bank by merging all the district cooperative banks and state cooperative banks has entered a crucial phase with the RBI referring the proposal to NABARD for its consideration. NABARD being the supervisory body for cooperative banks in the country, its approval will be crucial for the further progress in the setting up of the bank.Acting on the state government’s proposal, RBI has referred the matter to NABARD, according to a RBI communique sent to the government by assistant general manager U V Patel.
RBI will consider the proposal on the basis of NABARD’s report and recommendations. Meanwhile, a task force has been set up with the four support groups to work out the modalities of the Kerala Cooperative Bank or Kerala Bank.
Speaking to Express, one of the members of the support group said the regulatory and supervisory bodies - RBI and NABARD - will look into the scope of the proposed bank’s preparedness for setting up ATMs, mini ATMs, Electronic Fund Transfer facilities and other amenities. “The regulatory and supervisory bodies will be looking at the proposed bank’s preparedness in conducting business matching any modern commercial bank,” said the official.
“Providing ATMs, mini ATMS or Electronic Fund Transfer are only minimum facilities. To catch up with any other modern commercial bank, the proposed bank will have to make a giant leap on the technological front. More importantly, it should have human resources matching the banking professionals in other major banks to serve the customers satisfactorily.” A top Cooperative Department official said inducting more professional manpower for the sake of just starting the bank will be unlikely.
“They will have to train their already existing manpower to upgrade their skills,” the official said. “However, the Department is optimistic about RBI and NABARD clearing the proposal as it had already given sanction for the merger of cooperative banks in Chhattisgarh and Jharkhand.More states like Uttar Pradesh, Punjab and Odisha are also setting up a single state-level cooperative bank by merging the district cooperative banks.