//Cooperative society launched for non-residents and returnees

Cooperative society launched for non-residents and returnees

Tuesday, November 07, 2006

To tap and channelise the huge remittances made by non-resident Keralites (NRKs) and NRK returnees, the Kerala Pravasi Sangham (KPS), one of the largest body of NRKs, has registered a new cooperative society.

The primary objective of the new society is to enter into banking services, travel and tourism, information technology and even infrastructure development.

The chief promoter of the Kerala State Pravasi Kshema Vikasana Cooperative Society (Pravasis), Manjalamkuzhi Ali, a Communist Party of India- Marxist (CPI-M)-supported independent legislator, said that the society has been registered and we would have the first meeting Wednesday.

'We have decided to have a share capital of Rs. 500 million and it would be raised through shares. We have three types of shares prized at Rs. 50, Rs. 1,000 and Rs. 5,000,' Ali told IANS.

Those holding the Rs. 1,000 shares would only have voting rights and the Rs. 50 ones would have just benefits and the Rs. 5,000 share is for local bodies, other cooperative societies and even the government.

Membership for Rs. 1,000 and Rs. 50 shares is open only for NRKs and NRK returnees.

'We are certain that this society is going to be a huge success because our KPS has a record 200,000 members and our primary aim is to enter the banking services by raising Rs 3,000 crore (Rs.30 billion) by way of deposits in a matter of two years,' said Ali.

The new society would be based in Thiruvananthapuram, with district headquarters across the state.

Kerala has a record two million NRKs settled mostly in the Middle East and another million NRK returnees.

According to a study done by S.Irudayarajan of the Centre for Development Studies, a record Rs. 18,465 crore (Rs. 184.65 billion) was remitted by NRKs in 2004.

'Those who take the Rs 50 shares would be eligible to get loans at a cheaper rate as compared to non-members,' said Ali.