The Kerala Government has amended the Kerala Co-operative Deposit Guarantee Scheme, 2018, enhancing protection for depositors of cooperative banks and societies across the state.
Under the Kerala Co-operative Deposit Guarantee (Amendment) Scheme, 2026, the maximum guaranteed deposit per member has been increased to Rs 10 lakh, depending on the contribution made by the society to the Deposit Guarantee Fund.
The amendment also empowers the Deposit Guarantee Fund Board to provide financial assistance to societies facing liquidity challenges, ensuring deposits can be refunded in times of crisis or cash shortfall.
The revised scheme specifies the contribution structure for societies, including initial and subsequent payments based on deposit amounts, as well as treatment of unclaimed or dormant deposits exceeding ten years. Societies must remit contributions within three months of the financial year-end; otherwise, interest at 12% per annum will be levied and deposit guarantees temporarily suspended.
The amendment further strengthens governance by mandating formal accounting policies and annual audits for the Board to ensure transparency and accountability. The Government has directed all cooperative societies to comply with the updated regulations so that all members can benefit from enhanced deposit protection.