The State government will commission a study by an expert committee before taking a decision on setting up the Kerala Bank, Minister for Cooperation A.C. Moideen has said.
A panel comprising senior officials of the Reserve Bank of India was under consideration, he said while inaugurating a seminar organised by the Nabard Employees Association here on Saturday.
Mr. Moideen said the Kerala Cooperative Bank was envisaged as a two-tier institutional mechanism.
First tier
While primary cooperatives would be retained as the first tier, district banks would cease to exist as the middle level.
“The concept of Kerala Cooperative Bank is not new. It has been under discussion for years. Conceived as an alternative to the market-driven model, the proposed bank is expected to provide an impetus for the development of the State while protecting the interests of the people and strengthening the cooperative sector,” he said.
Stress on technology
Pointing out that cooperative banks were lagging in the adoption of technology, Mr. Moideen stressed the need for them to come up with options to attract the younger generation of customers.
The Minister said the Kerala Cooperative Bank was expected to be equipped with modern facilities, including foreign exchange. “We hope the RBI and Nabard will take a favourable approach to this idea.”
New opportunities
Assuring the employees of cooperative banks that their interests would be protected, he said the formation of the Kerala Bank would open up new opportunities for them.
Association president V. Ananthakrishnan presided.
