Earlier, examination used to be conducted within one month from the notification date and the rank list used to be published within three months.
The depositors had criticized the delayed inspection of the ED long after the fraud was unearthed.
The state government on Wednesday told the high court that it will avail loans from various sources, including the Kerala Bank, to repay the depositors.
Facing public pressure, CPM's Mylapra branch secretary Saju Manidas, who is also an employee of the bank, said he would resign from the post.
The irregularities at the bank are pegged at Rs 300 crore, but the government estimates it to be only Rs 150 crore.
Observing that the deposits were being returned without any criteria, the court directed the government to seek ways to avail loans to tide over the crisis.
This move comes amidst a series of scams that rocked the cooperative sector in the state.
Chandramati is yet to come to terms that her life savings of Rs 4 lakh, which she deposited in the bank to support her old age, vanished into thin air one fine morning.
The situation demands an urgent intervention of the govt, which should come out with stringent measures to stop the mafia, or else the damage to the state’s rural economy will be beyond repair.
57-year-old Sunitha, an unmarried housemaid, had saved Rs 1.5 lakh by washing dishes and mopping floors in many houses.