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The Communist Party of India (CPI) had criticised the government for the inordinate delay in resolving the Karavannur Bank scam.
Of late, scams were reported from several CPM-run cooperative banks across Kerala.
After Philomena's death, her husband Devassy kept her dead body in front of the bank and staged a protest.
The order has been issued following an intimation from the Motor Vehicles Department.
The bank's attachment move triggered a controversy after it evicted two minor Dalit girls, when their parents were in a hospital.
Vasavan, who is in Kannur as part of the CPM Party Congress, said that the eviction of children and locking their house went against the state government’s policies.
The Kunnamthanam Service Co-operative Bank reportedly turned down the application as the property falls within a survey number part of the proposed railway project.
The directive was issued considering the possibility of banks remaining closed for four days, Minister for Cooperation and Registration V N Vasavan said.
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