During the Assembly discussion on the Karnataka Friendly Cooperative Amendment Bill, 2025, Udupi MLA Yash Pal Suvarna voiced concerns over restrictions placed on the deposit of Statutory Liquidity Ratio (SLR) funds by friendly cooperative societies.
The amendment permits such deposits only in Apex banks and District Central Cooperative (DCC) banks. Suvarna argued that this limitation would financially burden societies, as they would miss out on competitive interest rates available elsewhere.
Highlighting the need to safeguard the interests of cooperative societies, Suvarna urged the state government to expand the scope of permissible deposits to include RBI-recognized town cooperative banks and nationalized banks, alongside apex and DCC banks.
He stressed that broader investment avenues would not only boost returns but also ensure the financial stability of friendly cooperative societies across Karnataka.