Representational Image | Mathrubhumi Thiruvananthapuram: The state government is gearing up to bring another bank in the cooperative sector under Kerala Bank. A recommendation from a government committee aims to merge the Kerala State Co-operative Agricultural and Rural Development Bank with the newly formed Kerala Bank.
The committee is of the view that there is no need for a special cooperative banking system in the agricultural and rural development sectors.
However, it is interesting to note that these agricultural banks are having assets worth crores of rupees. Meantime, Kerala Bank is incurring loss and hopes that a merger will ensure financial security for them.
There are 76 Primary Agricultural Rural Development Banks in the state and its apex body, the State Co-operative Agricultural Rural Development Bank. Further, most of the banks are currently under the rule of UDF. With the merger, the UDF will lose its dominance in the sector and the cooperative sector will be completely under the control of the ruling government.
Earlier, the government has appointed a special committee to study and report on the changes and modernization to be undertaken in the State Co-operative Agricultural and Rural Development Bank. The report prepared by a committee chaired by Dr R Sasikumar submitted the recommendations to Minister VN Vasavan.
Recommendations from the Committee
State Bank, the apex bank of primary agricultural and rural development banks, should be made part of Kerala Bank.
With the merger, the bank will become the Agricultural and Rural Development Credit Department of the Kerala bank.
The Kerala State Co-operative Agricultural Rural Development Bank Act, 1984 and the Co-operative Act, 1969 should be amended.
By-laws of the bank should be completely avoided.
The merger of the Kerala State Co-operative Agricultural and Rural Development Bank with Kerala Bank will revive the entire cooperative sector.Softwares and technology used in Kerala Bank can also be implemented in the Agricultural Development Bank.Primary Agricultural and Rural Development Banks can ensure independent functioning. kerala bank