An expert panel has submitted a report regarding the feasibility to merge 15 cooperative banks of Kerala into a single Kerala Cooperative Bank (KCB).

The merger has been recommended in a time span of 18 months. The report was prepared by a five-member committee headed by Professor MS Sriram.

The report has suggested the formation of a Kerala State Financial Regulatory Authority covering all cooperative institutions that deal with financial operations that don’t come under RBI monitoring.

It also says that KCB will not compete with primary agricultural cooperative societies (PACS), but will try to strengthen them.

“The bank will not fleece customers. Product charges cannot be avoided but customers will not be asked to pay many service charges as done by commercial banks. The bank will be customer-centred,” The New Indian Express quotes S Sriram as saying.

The report also says that KCB would offer professional approach and advanced technologies.

The committee has suggested forming a project management unit and project advisory board.

It has also suggested the initiation of procedures to get NABARD (National Board of Agricultural and Rural Development) and RBI approval.

“There should be three regional offices with boards of selected members in the respective regions, which can protect regional interests. There should also be a central office and a central board. The recommendations in the report should be published to get public feedback, so that modifications could be made based on them,” The Times of India report.

As per the report, following the merger, district cooperative banks will have to wind up all their functions including other activities like provision stores or renting out auditoriums. But agricultural cooperative societies will continue to function.