In a major decision the Urban Affairs Ministry has decided to offer parity to co-op banks with the commercial banks in the state of Kerala.
Now fixed deposit certificates issued by cooperative banks including primary, urban and district cooperative banks would be considered as security against payment of ” earnest money deposit ” for contract works.
The decision in this regard was the outcome of a pow-wow between cooperative and urban affairs ministers in the state.
The development is being widely hailed in the cooperative sector in Kerala as earlier fixed deposits issued by nationalised banks alone were regarded as security against ” earnest money deposit”, claim sources.