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Kerala govt to merge dist co-op banks with state co-op bank

Press Trust of India  |  Thiruvnanthapuram 

The government Wednesday decided to merge 14 district banks with the state as part of its proposal to set up the ''

The cabinet decision comes in the wake of the Reserve of India (RBI) according in principle approval to the start the 'bank,' a Pinarayi Vijayan's office said here.

With this, the three tier system in the state would become a two-tier model, it said.

Changes would be made in accordance with the conditions laid down by the RBI.

This was a step forward to set up the Kerala Bank, the release added.

Meanwhile, of Opposition in the assembly Ramesh Chennithala asked the government to withdraw its decision as it would only lead to the destruction of the co-operative system in the state.

He also pointed out that the RBI has put forth 19 'tough' conditions which the government would find difficult to meet.

Merging of with the state co-operative bank would result in the destruction of democratic process in the co-operative sector, Chennithala claimed.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, October 10 2018. 20:30 IST