KERALA BANK: THE PEOPLE'S BANK

The cooperative banking system is the backbone of the Indian state of Kerala.

- Vignesh S G

It has played a huge role in the development of the state – especially in the development of the rural economy of the state.

On 29th November, 2019, the state upgraded its cooperative banking sector massively. The said upgradation, which was achieved through the merger of at least thirteen District Cooperative Banks, marked the birth of Kerala Bank.

The state government projected the development as a great achievement. The merger was one of the prime goals of the leftist-led Kerala government.

The merger invited mixed reaction. As expected, many raised their doubts about the feasibility of the policy. Nonetheless, a large section of the population of the state welcomed the policy.

It is needless to say that the formation of Kerala Bank is one of the revolutionary steps the state has taken so far in the area of economy.

Primary agricultural credit societies, non-credit cooperative societies, district cooperative banks and state cooperative banks are the biggest beneficiaries of the move, apart from farmers, small and medium scale business entrepreneurs, and small scale business persons.

What comes naturally with the merger of the cooperative banks is the infusion of modern banking technology. Actually, it was what most of the cooperative banks in the state was lacking.