Kerala govt to move departmental accounts to cooperative banks
Accounts of the KSEB, Devaswom Board, KSRTC, Beverages Corporation, Kerala Water Authority and Welfare boards will be moved to district cooperative banks
In a bid to help the cooperative banking sector, the Kerala government has decided to move all accounts of the government departments to these banks.
After demonetisation, cooperative banks are in crisis due to restrictions imposed by the central government. On November 14, The RBI had banned exchange of Rs. 500 and Rs. 1000 notes through cooperative banks.
The Kerala government has decided to move accounts of the KSEB, Devaswom Board, KSRTC, Beverages Corporation, Kerala Water Authority and Welfare boards to district cooperative banks.
More government departments will be added to the list. The fund will be helpful for cooperative banks during this time of difficulties.
Kerala Finance Minister Thomas Issac will meet Union Finance Minister Arun Jaitley on Friday to discuss and atone issues faced by cooperative banks. It is likely that the state government would go forward with moving government accounts to cooperative banks, if no solutions are found in the meeting.