With a view to avoiding any potential financial problems, Kerala Government will encourage Primary Agricultural Co-operative Societies (PACS) as official bankers of local bodies in the state, reports Indian Express.
Kerala Co-operation Minister Kadakampally Surendran who recently released the Draft Cooperative Policy had a proposal in this regard.
According to the Draft, the local self-government (LSG) bodies will invest all their funds in PACS in their jurisdiction and route all banking transactions through them.
Presently, the local bodies are depositing funds with the commercial banks. The move, the minister claims will greatly strengthen the cooperative sector in Kerala.