Kerala govt gets RBI’s nod for formation of Kerala Bank
The Reserve Bank of India (RBI) has given its final nod to Kerala Government for the formation of Kerala Bank. The final nod by RBI was subjected to certain conditions. RBI’s approval is valid only till 31 March 2020.
The proposed Kerala Bank would be formed by merging 13 District Co-operative Banks (DCBs) with Kerala State Co-operative Bank. With its formation, the proposed Kerala Bank will be the largest banking network in the state.
The setting up of new bank would also be in accordance with final verdict of some cases pending before a court in this regard.
As per the state government the objective behind formation of Kerala Bank was to strengthen cooperative sector. However it is also suspected that the move would destroy the traditional cooperative sector.
Category: Economy & Banking Current Affairs