Operations of Co-op banks in Kerala: High-level committee proposes guidelines

Biju Paravath

Representative Illustration

Thiruvananthapuram: The high-level committee constituted in the wake of Karuvannur Co-operative bank has come up with fresh guidelines to curb malpractices in cooperative banks and societies in the state. The guidelines are listed in the report compiled by the committee. Some of the major recommendations are:

  • If a cooperative bank is sanctioning loan more than Rs 10 lakhs for any project, then the project report should be submitted to avail loan. For instance, if it is for construction works, then plan and estimate should be submitted.
  • If a cooperative bank is sanctioning loan more than Rs 10 lakhs to an entity for project, then the formalities followed by commercial banks should be adhered to.
  • Professional directors should be part of the panels under cooperative societies which issue loans.
  • A special mechanism for the assessment of mortaged property should be in place to curb inflated estimation.
  • Registrar should ready the list of qualified and experienced valuers to be part of the panel sanctioning loans.
  • There should be more clarity while including transactions related to Monthly Deposit Scheme (MDS)/chitti as the latter does not follow a unified bookkeeping method.

Add Comment
Related Topics

Get daily updates from Mathrubhumi.com

Disclaimer: Kindly avoid objectionable, derogatory, unlawful and lewd comments, while responding to reports. Such comments are punishable under cyber laws. Please keep away from personal attacks. The opinions expressed here are the personal opinions of readers and not that of Mathrubhumi.