The CPI(M)-led LDF government’s much-awaited project, Kerala Bank, is expected to become a reality by August 16 next year.
All formalities in this regard will be completed by August 16, a government release said.
An ambitious project of the LDF government, the proposal was to form a Kerala Bank by merging district co-operative banks with state co-operative banks, converting the present three-tier cooperative into two-tier system.
The government has already approached RBI for necessary permission to start the Kerala Bank, the release said.
The re-deployment of employees, its business policy for the next five years has already been submitted to the RBI, the release said.
The objective is to strengthen the cooperative sector, especially in the wake of state public sector bank State Bank of Travancore merging with the State Bank of India, according to the release.
Modernisation of the co-operative sector was going on smoothly and steps for modernisation of primary cooperative banks has also begun, it added.