Question : Kerala Bank

(a) whether State Government of Kerala has submitted any proposal before the Reserve Bank of India (RBI) to set up Kerala Bank by merging district cooperative banks in Kerala;

(b) if so, the details thereof and the decision taken by the RBI in this regard;

(c) whether the Government is aware that such a move would destroy the very principles and structure of cooperative sector in the States; and

(d) if so, the details thereof?

The Minister of State in the Ministry of Finance



(a) to (d): Reserve Bank of India (RBI) has reported that Government of Kerala has proposed to amalgamate all 14 District Central Cooperative Banks (DCCBs) in the State of Kerala with Kerala State Cooperative Bank and has sought approval of RBI in the matter. State Government of Kerala would take a decision in the matter based on advice of RBI.