A major setback to ruling CPM government of Kerala, reports have emerged that underlines the RBI has not given permission to the state government to use the name Kerala Bank. The report further says that permission was granted to merge 13 District Co-operative Banks into Kerala State Co-operative Bank only. Under the new circumstances, the Kerala Bank logo may also be invalid.
The Kerala Bank was inaugurated by the state government amid much criticism. The government had claimed that the RBI had given permission to set up a new bank, Kerala Bank. But government documents show that the claims were false.
Permission has been granted only to merge 13 District Co-operative Banks in the State with Kerala State Co-operative Bank. Government documents and RBI orders clearly say that the state doesn’t have permission to set up Kerala Bank as the state government claimed earlier. With this, crores of rupees spent on advertisement are also wasted.
Experts indicate that the boards which were set up under the name Kerala Bank will also have to be replaced. Amidst the gold smuggling controversy, the new reports have also brought stringent criticism on the government.