THIRUVANANTHAPURAM: The Kerala Government sources have confirmed that the Reserve Bank of India (RBI) has granted permission to establish Kerala Bank through the merger of district cooperative banks with the Kerala State Cooperative Bank (KSCB).
The Kerala Chief Minister Pinarayi Vijayan (seen in the picture) has conveyed his wishes for the formation of Kerala Bank, which has been considered one of the dream projects of the current government.
Thirteen district cooperative banks except Malappuram District Cooperative Bank had already accorded their consent with simple majority to form the new bank. What will happen to Malappuram District Bank as well as its shareholders is yet to be seen.
Though the cases filed by different factions of United Democratic Front (UDF) and the mandatory requirement of two-thirds majority were the main hurdles before the formation of Kerala Bank, it is believed that the RBI has relaxed the two-thirds majority norm to simple majority as the things sand now.
However, there has not been any clear information about the cases pending with the courts. Notwithstanding this, the Government hopes to inaugurate the bank on November 1, the Kerala Piravi Day (the day of Kerala birth).’
Though the government had initiated steps for the formation of Kerala Bank soon after the new Cabinet was formed about three years ago, it was delayed, thanks to the opposition from some of the district cooperative banks. The Opposition had also requested RBI not to grant the permission for Kerala Bank.
