The Government of Kerala on January 09, 2026, issued the Kerala Co-operative Deposit Guarantee (Amendment) Scheme, 2026 to further amend the Kerala Co-operative Deposit Guarantee Scheme, 2018.
The following amendments have been stated:
• For paragraph 3, the following shall be substituted, namely:¬
“3. Purpose of the scheme.¬ The purpose of the scheme is to provide guarantee for the deposits made in societies by its members and for creating confidence among the depositors thereby to attract more deposits and the Board may also, if necessary, provide financial assistance to a Guaranteed Society so as to refund the deposits to depositors in case of a crisis or hardship incurred to a society due to liquidity risk or insufficient cash or such other reasons.”
• In sub¬paragraph (2) of paragraph 5, the following shall be substituted, namely:¬
“(2) The corpus of the fund shall be built up by contribution and unoperated deposit amount, from the societies specified in paragraph 4 of this Scheme, as follows:¬
(a) Every society shall make the initial contribution to the fund on the outstanding amount of deposits at the beginning of the financial year in which the scheme comes into force or the Society joins the scheme. The contribution to be made to the fund is at the rate of 0.10% per annum on deposit amount outstanding at the beginning of the financial year in which the scheme comes into force or the year in which the Society joins the scheme, whichever is later.
(b) The initial contribution to the fund payable by the societies shall be remitted either in lump sum or in two annual installments.
(c) Subsequent contributions shall be made on the incremental amount of deposit outstanding at the end of each financial year at the rate 0.12% per annum.
(ca) The contribution from the depositor for upto Rupees Ten Lakhs as compensation as in Paragraph 9(1(a)) shall be at the rate 0.10% per annum on the deposited amount initially and at the rate 0.12% per annum on the incremental amount of deposit outstanding at the end of each financial year.
(d)The balance of funds, if any, available with the District Cooperative Banks under the scheme provided as per G.O.(P)No.3/2012/Co¬Op dated 11th January, 2012 shall be transferred to the corpus of the fund by the General Manager of the Bank on request of the Board.
(e) The amount to the credit of any account with a society which has not been operated upon for a period of ten years or any matured term deposit or any amount remained unclaimed for more than ten years shall be credited to the fund within a period of three months from the expiry of the said period of ten years: Provided that nothing contained in this sub¬paragraph shall prevent a depositor or any other claimant to claim his deposit or unclaimed amount or operate his account or deposit account with the society after the expiry of the said period of ten years and such society shall be liable to repay such deposit or amount at such rate of interest as may be specified by the Registrar of Co-operative Societies:
Provided further that the society which has paid the outstanding amount referred to in this sub-paragraph or which has allowed operation of such account or deposit, may apply for refund of such amount from the Board in such manner as may be specified by the Board.
(f) The contribution shall be remitted in the account of the Board in the manner as may be provided by regulations framed by the Board.
(g) The Societies shall remit the contribution and deposit amount to the fund within three months after the completion of a financial year calculated at the prescribed rate specified under clause (a), (c), (ca) and (e) of sub-paragraph (2) of paragraph 5 failing which the Chief Executive of the society shall be made liable to pay an interest for the defaulted contributions at the rate of twelve percent per annum, till the payment made and the amount so paid will form part of the fund. If the annual contribution due is not paid within three months as mentioned above, the deposits of such society shall be excluded from the guarantee and insurance cover for the period of such delay.
(h) No portion of the contribution remitted shall be refunded to any society for any reason.
(i) The Government may, at their option, make contribution to the corpus of the fund, maximum to an extent of the total amount contributed by the member societies.
(j) All moneys belonging to the fund shall be deposited in the accounts opened in the joint names of the Secretary-Treasurer and ViceChairman of the Board in the branches of the Kerala State Co¬operative Bank or District Co¬operative Banks concerned or in the Government Treasury.
(k) The contribution paid by the Guaranteed Societies to the Board is required to be absorbed by the banks/societies themselves so that the benefit of the Deposit Guarantee Protection is made available to all the depositors. A guaranteed society/bank is required to remit contribution not later than the last day of June each year. If it does not pay on or before the stipulated date, the contribution payable by it or any portion thereof, it is liable to pay interest at the rate of 12% per annum on the amount of such contribution or on the unpaid portion thereof as the case may be from the beginning of July of that year till the date of payment. Interest is calculated on the basis of actual number of days of default taking one year as 365 days.”.
It shall come into force at once.
[Notification No. S. R. O. No. 36/2026]
