In the context of the controversies related to the Karuvannur Cooperative Bank, the discussion regarding the safety of investment in service cooperative banks and other cooperative societies operating in Kerala is also heating up. One of the most important questions that arises is whether the deposits in Co-operative Societies and Service Co-operative Bank are covered by insurance.
Deposit Insurance Credit Guarantee Corporation (a subsidiary of RBI) provides a cover of Rs five lakh for deposits in all commercial banks in the country operating with the approval of the Reserve Bank. Similarly, it is a fact that a protection of five lakh rupees has been ensured through the ‘Kerala Cooperative Investment Guarantee Fund Board’ led by the state government for investment in cooperative societies in Kerala.
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Cooperative Investment Guarantee Fund
The Kerala Cooperative Investment Guarantee Fund Board is a system established in 2012 under the leadership of the State Cooperative Department as part of ensuring insurance coverage for investments in cooperative societies in Kerala. The guarantee is provided for the investments in the cooperatives which are functioning under the control of the Registrar of Co-operatives, are members of the Investment Guarantee Fund Board and maintain the terms and conditions of the same.
At the same time the co-operative societies are in the process of going into liquidation to provide the promised five lakhs on investment. Last June, the guarantee for investment was increased to five lakhs. According to the data available from the website of the Kerala Cooperative Investment Guarantee Fund Board, the investment in 1,772 cooperative societies, which have paid the share to be submitted to the guarantee fund till the financial year 2021-22 and handed over documents including a copy of the audit certificate, are covered under the protection offered by the Cooperative Investment Guarantee Fund Board.
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Co-operative banks or primary societies, once members of the Co-operative Investment Guarantee Board, if they do not renew their membership in subsequent financial years, shall be eligible for guarantee only on deposits up to the year of renewal of membership. Meanwhile, below is the list of cooperative societies which are members of Kerala Cooperative Investment Guarantee Fund Board in various districts.
Thiruvananthapuram
- Service Cooperative Banks: 31
- Employees’ Co-operative Societies: 0
- Non-Agricultural Co-operative Societies: 25
- Women’s Co-operative Societies: 1
Kollam
- Service Cooperative Banks: 52
- Employees’ Co-operative Societies: 5
- Non-Agricultural Co-operative Societies: 20
- Women’s Co-operative Societies: 2
Pathanamthitta
- Service Cooperative Banks: 29
- Employees Co-operative Societies: 10
- Non-Agricultural Co-operative Societies: 7
- Women’s Co-operative Societies: 0
Alappuzha
- Service Cooperative Banks: 44
- Employees Co-operative Societies: 14
- Non-Agricultural Co-operative Societies: 6
- Women’s Co-operative Societies: 0
Kottayam
- Service Cooperative Banks: 70
- Employees Co-operative Societies: 26
- Non-Agricultural Co-operative Societies: 15
- Women’s Co-operative Societies: 4
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- Service Cooperative Banks: 30
- Employees Co-operative Societies: 12
- Non-Agricultural Co-operative Societies: 14
- Women’s Co-operative Societies: 5
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Ernakulam
- Service Cooperative Banks: 87
- Employees Co-operative Societies: 29
- Non-Agricultural Co-operative Societies: 47
- Women’s Co-operative Societies: 9
Thrissur
- Service Cooperative Banks: 64
- Employees Co-operative Societies: 15
- Non-Agricultural Co-operative Societies: 85
- Women’s Co-operative Societies: 17
Palakkad
- Service Cooperative Banks: 53
- Employees Co-operative Societies: 21
- Non-Agricultural Co-operative Societies: 64
- Women’s Co-operative Societies: 6
Malappuram
- Service Cooperative Banks: 68
- Employees Co-operative Societies: 13
- Non-Agricultural Co-operative Societies: 37
- Women’s Co-operative Societies: 58
Kozhikode
- Service Cooperative Banks: 41
- Employees Co-operative Societies: 15
- Non-Agricultural Co-operative Societies: 74
- Women’s Co-operative Societies: 47
Wayanad
- Service Cooperative Banks: 12
- Employees Co-operative Societies: 15
- Non-Agricultural Co-operative Societies: 74
- Women’s Co-operative Societies: 47
Kannur
- Service Cooperative Banks: 65
- Employees Co-operative Societies: 19
- Non-Agricultural Co-operative Societies: 98
- Women’s Co-operative Societies: 80
Kasaragod
- Service Cooperative Banks: 29
- Employees’ Co-operative Societies: 0
- Non-Agricultural Co-operative Societies: 42
- Women’s Co-operative Societies: 19
