Times of India reports on the first anniversary of the LDF government, Kerala will have a new cooperative bank ‘Kerala Bank’ that will amalgamate district cooperative banks and state cooperative banks, cooperation minister A C Moideen is quoted as saying.
The minister said ”his department plans to integrate all the district cooperative banks and state cooperative banks to launch Kerala Cooperative Bank, that will have a larger role to play in the cooperative sector competing with other mainstream banks.
A committee headed by an expert who has worked at Reserve Bank of India will be soon constituted to prepare the detailed report on the project, The “bank will be launched in one year” the minister said.
The cooperative banks are under the control of Nabard that lends out funds at 1% rate of interest to state cooperative banks which when ultimately reaches the end user, becomes 9% rate of interest after it goes through the state, district and primary cooperative banks.