Thiruvananthapuram: Chief Minister Pinarayi Vijayan has said that the Reserve Bank of India has given an in principle approval to the state’s proposal to start Kerala Bank.
The state was informed about the decision through a letter on Wednesday by the RBI, said Mr Vijayan in a statement.
The merger of all the cooperative banks to form the Kerala bank should be completed before March 31, 2019 following the financial, legal and administrative norms of the RBI, he said. Licensing and final permission will be subject to fulfillment of these norms. The merger should be in accordance with Kerala Cooperative Act and Rules. The State government should ensure that there was no court stay or ruling against the merger.
State Cooperative Bank and District Cooperative Bank should form a merger plan and present it before the members. General Body of respective banks should pass a resolution with two third majority agreeing to the merger.
MoU should be entered with state bank, district bank and the state government for the merger. The MoU should have details of administration, management structure, Human resources and assets and liabilities of the bank.
The capital capacity and networth should be as per the norms of Reserve Bank.
If there are any deficiencies, State Government should take steps to rectify it. The balance sheet for the bank thus formed should be legally sound.
