As a part of restructuring of Co-operative credit structure, all the 14 District Cooperative Banks and Kerala State Co-operative Bank will be integrated and form a Kerala Co-operative Bank which will be strengthened in all aspects i.e. economically and technologically. The Kerala Co-operative Bank at the core will be serving co-operatives and their members, but will also function as a modern banking institution participating in the economic growth and prosperity of Kerala. The operating principle would be to eliminate all overlaps at the field level and transfer the business pro-actively to the PACS where the PACS is permitted and capable of handling the business while the Kerala Co-operative Bank provides the back up support to PACS. An amount of Rs.10.00 lakh is provided for the Formation of Kerala Co-operative Bank in 2018-19.

Assistance in the form of share, loan and subsidy to State co-operative Bank/District co-operative Banks for computerization of the Banks/Core banking, installation of ATM facilities and upgradation of technology, acquisition of modern technological devices for the functioning of Banks and for Co-operatives.

Assistance to District Co-operative Banks to strengthen their share capital base/ to increase the CRAR position of the banks.