The finance dept of the Kerala govt. has asked the cooperative banks to park their money in the state treasury so the govt. could disburse salary and pension to its employees in the next days.
The govt. needs about Rs. 3000 crore to meet its financial commitments.
However, worried about the lack of finances, the govt. is trying to gather finances from various sources and staggering the payment in order to be able to make do with only about Rs 500 crore as a short-term solution to the problem.