The new National Cooperative Policy, which permits Urban Cooperative Banks (UCBs) to expand operations nationwide, has opened doors for cooperative banks in Kerala, as well as those in other states; however, an existing clause in the Kerala Cooperative Societies Act restricts this expansion, reports Mathrubhumi.com.
A key obstacle is Clause (c) of sub-section (1) of Section 7 of the Kerala Cooperative Societies Act, which restricts any other cooperative society from operating in the state if a similar one exists. This clause hinders other states’ cooperative banks from entering Kerala, and equally limits Kerala Bank’s flexibility for reciprocal expansion.
Additionally, Kerala Bank is grappling with The situation underscores the complex legal and logistical hurdles facing cooperative banking reform in Kerala.
