Thiruvananthapuram, Oct 10 (KNN) A step that would help cash starved local micro, small and medium enterprises (MSMEs) get credit inflow, the Reserve Bank of India (RBI) has given final nod for setting up Kerala Bank.

Setting up state’s own bank by merging district co-operative banks was Kerala government's long pending dream.

With its formation, the proposed "Kerala Bank" will be largest banking network in the state.

Expressing happiness over the apex bank's approval for the initiative, Chief Minister Pinarayi Vijayan said the "Kerala Bank" would be formed amalgamating the district co-operative banks (DCBs) with Kerala State Co-operative Bank.

The final nod by the RBI was subjected to some conditions, he said adding the setting up of the new bank would also be in accordance with the final verdict of some cases pending before a court in this regard.

As many as 13 DCBs would be reportedly merged with the Kerala State Co-operative Bank for forming the proposed Kerala Bank.

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