The Kerala Government on January 3 (Wednesday) decided to hike the interest rates for deposits in the Kerala Bank and primary cooperative societies in the State.
On deposits of terms up to one year, the interest rate will go up by 0.50% and on those above one year by 0.75%, Minister for Cooperation V.N. Vasavan said after a meeting of top functionaries in the State’s cooperative sector.
The new rates will come into effect from January 10, 2024 coinciding with a deposit mobilisation drive lasting from January 10 to February 10. The rates were last revised in February 2023.
The revised rates for deposits in primary cooperative societies are as follows (old rates in brackets):
15-45 days: 6% (6%), 46-90 days : 6.50% (6.50%), 91-179 days: 7.50% (7%), 180-364 days: 7.75% (7.25%), one year to two years: 9% (8.25%), and above two years: 8.75% (8%).
The new rates for deposits in the Kerala Bank are as follows (old rates in brackets):
15-45 days: 5.50% (5.50%), 46-90 days: 6% (6%), 91-179 days: 6.75% (6.25%), 180-364 days: 7.25% (6.75%), one year to two years: 8% (7.25%), and above two years: 7.75% (7%).
Deposit mobilisation drive from Jan. 10
The Cooperation department has set ₹9,000 crore as the target for a deposit mobilisation drive which will be on from January 10 to February 10. Mr. Vasavan will launch the drive in Thiruvananthapuram on January 10.
Primary cooperative banks have a target of ₹7,250 crore, Kerala Bank ₹1,750 crore and Kerala State Cooperative Agricultural and Rural Development Bank (KSCARD), ₹150 crore. The banks have been asked to mobilise 30% of the deposits in the current account and savings account categories.
The department hopes to mobilise ₹900 crore from Malappuram and ₹800 crore from Kozhikode – the districts with the biggest targets – during the drive.
The month-long campaign is aimed at attracting the younger generation to the cooperative sector in addition to achieving the aim of having at least one cooperative bank account in every household.
One-time settlement scheme extended till Jan. 31
The Navakeraleeyam one-time settlement scheme that was launched on November 1 in the cooperative sector will continue till January 31, Mr. Vasavan said.
The scheme was announced to help people who have defaulted on repayment of loans taken from cooperative institutions.
