According to AIBEA, the largest bank employee union, what India needs is strengthening of public sector banks and not opening up banking sector to private players whose track record is also not appreciable
The All India Bank Employees Association (AIBEA) has objected the Reserve Bank of India (RBI)'s in-principal nod for new bank licences to IDFC and Kolkata-based Bandhan Financial Services Pvt Ltd.
"It is a matter of concern that despite protests, the Election Commission (EC) has given its approval to the RBI to go ahead with the process of new bank licenses and immediately the RBI has already given in principle permission to two companies to start their own private banks," said CH Venkatachalam, general secretary, AIBEA in a statement.
The bank employee union said its officer bearers will meet on 19th April in Punjab to decide upon the next course of action against RBI's decision.
Last week, the RBI gave its approval to IDFC and Bandhan Financial to start new banks following green signal from the EC. Affirming that the grant of new bank licences is a regulatory process and not political, RBI governor Raghuram Rajan had said the central bank sought the EC's nod only to shield the announcement from any political controversy.
The process to award new bank licences was initiated in 2011 and it has spilled over to the election season because the due diligence process took a little longer, Rajan said, adding, "All regulatory processes have to come to an end."
Mr Venkatachalam said, "It is strange that even though the Standing Committee on Finance consisting of all major political parties has unanimously given its recommendations against the banking licenses at this juncture, the RBI is going ahead in their anxiety to appease the corporates. What our country needs strengthening of public sector Banks and not opening up banking sector to private players whose track record is also not appreciable."
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
Babus also do not realise that Unions are controlled by vested interests from outside.
It is time they learnt that it is survival of the fittest - one has to work his/her way up in life. Yes employees union or association to discuss their problems are essential for the progress of both, employee and the employer.
Nothing happens in the govt departments because of corruption influence; those who cannot stand this, simply leave for better opportunities elsewhere and progress in life.
Unless stern measures are in place for handling the corrupt, our progress can be nothing but slow.