THIRUVANANTHAPURAM: The government on Tuesday promulgated an ordinance disbanding governing councils of District Cooperative Banks in the state. To avoid administrative stalemate the cooperative registrar has been given the power to constitute an administrative committee or appoint an administrator. The tenure of administrative committee will be a maximum of one year. The membership of district cooperative banks has been limited to primary agricultural cooperative societies and urban cooperative banks.
The membership of other cooperative societies in district cooperative banks will cease to exist. The ordinance has been promulgated based on a study conducted by the cooperative registrar on the functioning of the cooperative societies. More than 70 per cent of the deposits in district cooperative banks are made by primary agricultural cooperative societies. The lion share of loans too is taken by primary agricultural cooperative societies. Therefore the new ordinance would help the agricultural sector.
