RBI gives final nod to Kerala govt for formation of Kerala Bank

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The Reserve Bank of India has given its final nod to the Kerala Government for the formation of the Kerala Bank. With its formation, the proposed Kerala Bank will be the largest banking network in the state.

Expressing happiness over the apex bank's approval for the initiative, Chief Minister Pinarayi Vijayan said the Kerala Bank would be formed amalgamating the District Co-operative Banks (DCBs) with Kerala State Co-operative Bank.

The final nod by the RBI was subjected to some conditions, he said adding the setting up of the new bank would also be in accordance with the final verdict of some cases pending before a court in this regard.

The government had claimed that the objective of the formation of the Kerala Bank was to strengthen the cooperative sector, while the Opposition had alleged that it would destroy the traditional cooperative sector. (AIR NEWS)