If depositors money not returned people will lose trust in coop banks HC

The Kerala High Court emphasized that authorities must ensure cooperative banks honor depositors' requests for money, as failure to do so would erode public trust in the sector. Justice Devan Ramachandran highlighted that diminishing faith in cooperative banks would harm the state's fiscal health. \r

The court was hearing petitions from depositors seeking the return of their money and noted slow progress since the last hearing. The state government is working on amendments to ensure timely returns. Some banks reported partial repayments, but delays are causing significant social impacts. \r

The court urged the government to act proactively and scheduled further hearings for June 19.