Malappuram: The interest rates on investments in the cooperative sector have increased. Interest rates of primary cooperative societies and Kerala Bank have been increased. On investments up to two years, there is an increase of 0.5 per cent and for those above two years, the hike is 0.25 per cent.
The decision was taken in a high-level meeting held in Malappuram headed by cooperation minister VN Vasavan. The increase came into effect on Monday. With the increase, the investors in cooperative banks will get higher interest rates than the rates of nationalised and other banks. The interest rate in the cooperative sector was changed last October.
The interest rate was hiked during the investment mobilisation campaign. The estimation is that more investment can be collected with the interest rate increase. The target this time around is Rs 9,000 crore. Kerala State Agriculture and Rural Development Bank has to raise Rs 150 crore and the Kerala Bank Rs 1,750 crore. The target of other cooperative banks is 7,250 crore.
New interest rates (in %) (Old rate in bracket)