Govt mulls to shift accounts of PSUs to co-op banks
Thiruvananthapuram: The state government is considering novel ways to resolve the crisis faced by the cooperative banks in the wake of Centre’s demonetisation move.
In this regard, the government is pondering over depositing the revenue generated by the public sector undertakings in cooperative banks.
The government plans to shift the accounts maintained by the firms including Kerala State Beverages Corporation, Devaswom Board, KSEB, Kerala Water Authority, KSRTC and Welfare Boards to district cooperative banks.
Since these PSUs are handling transactions in smaller amounts to the tune of several lakhs, the government thinks that the move would resolve the shortage of lower denomination currency too.
Further, it will strengthen the government’s plan to form the Kerala Bank by linking the cooperative banks.
Finance Minister Thomas Isaac and Cooperation Minister Kadakampally Surendran are meeting Union Finance Minister Arun Jaitley to chalk out plans to end the crisis in cooperative sector.
It is expected that a decision in shifting the accounts of primary cooperative societies to district cooperative banks will be taken at this meeting.