THRISSUR: Karuvannur Co-operative Bank may receive Rs 100 crore in the first phase from the Co-operative Reconstruction Fund to address the crisis. Further actions will be taken after evaluating the utilization of this amount. To access the funds, Karuvannur Bank must submit a restoration plan outlining the loan repayment period, interest rate and the amount to be returned to investors.

Karuvannur bank officials are participating in a meeting of cooperative experts and others, chaired by the Minister of Cooperation, in Kochi on the 3rd and online on the 4th. An official order will be issued after considering the opinions expressed in the meeting. The Cooperation Minister has instructed officials to expedite the process. While the primary focus is on aiding Karuvannur Bank, the fund will also benefit other struggling cooperative organizations. Funding will be sourced from the reserve fund of cooperative societies and the agricultural stabilization fund within Kerala Bank with the plan being to allocate 50 percent of the reserve fund to assist groups in crisis.

To manage the disbursement of funds including determining repayment periods and interest rates, a board will be established with the Minister of Cooperation as its Chairman. This board will also include the departmental secretary, registrar, cooperative and financial experts. Funding for the operational expenses of the board will be allocated from the Plan Fund. Additionally, there will be three-level monitoring committees under the board, consisting of officials from the Cooperative Department, cooperative representatives and experts at the state, district and Sangam/Bank levels.

Failing cooperative groups must submit a rehabilitation plan to the district-level monitoring committee. The district committee will review and forward it to the state committee, which will be responsible for approving the allocation of funds. The efficient utilization of the provided funds will be closely monitored.

Reserve fund allocation

15% profit share for groups

Agricultural Stabilization Fund: 5%

Interest paid on savings: 6%

Total amount in the fund: 1300 crores

Funds available for renovation: 650 crores

Amount allocated for Karuvannur: 288 crores.