The Kerala government Wednesday decided to merge 14 district co-operative banks with the state co-operative bank as part of its proposal to set up the 'Kerala Bank.'
The cabinet decision comes in the wake of the Reserve Bank of India (RBI) according in principle approval to the start the 'Kerala bank,' a release Chief Minister Pinarayi Vijayan's office said.
With this, the three-tier co-operative system in the state would become a two-tier model, it said.