The Kerala High Court emphasized the critical role of cooperative banks in maintaining public trust in the financial sector. Justice Devan Ramachandran warned that a lack of confidence in these banks could deeply harm the state, especially during unsatisfactory fiscal conditions, media reports say.
He highlighted the importance of banks returning fixed deposits promptly to maintain a healthy financial environment. The court’s remarks came during a hearing involving several petitions from depositors demanding the return of their funds from various cooperative banks.
Despite previous hearings, there was little progress as banks reported minimal payments made. The state government proposed legislative amendments to ensure prompt repayment, while the Kumplampoika and Kizhathadiyoor banks reported partial repayments to depositors.