Bank employees to go on strike on December 20th

Decision against Govt's attempt to push amendment to the Banking Laws

Around five lakh employees representing various public sector Banks are planning to go on a strike on December 20th against Government's plans to push an amendment to the Banking laws. It may be noted on Monday, the ruling United Progressive Alliance (UPA)-led by Congress party in the Centre tried to push through an amendment to the Banking laws at the Parliament, but it was failed due to oppositions objection.

While the Government and analysts have said it will pave way for new bank licences, give shareholders more voting rights, and help state-owned banks raise capital, the Unions are in view that it will dilute the interest of public sector Banks.

C H Venkatachalam, general secretary, All India Bank Employees' Association (AIBEA) said that the Government is in a hurry to pass banking law amendments, if it happens it will dilute the interest of the public sector Banks and Bill will remove all restrictions on voting rights of Foreign Capital investors in Banks, increase in voting rights of private investors in the equity capital of Public Sector Banks, making Bank merger easier, powers to supercede the Boards of Banks, etc.

“All these are unwarranted measures. Government also wants to issue licences to corporate and business houses to start their own Banks”.

He noted, banks in India today have nearly Rs.60 lakh crore as Deposits representing the earned savings of the people of our country.

On the other hand, public Sector banking is being weakened due to bad loans of corporate companies, which are increasing.

“Their loans are being re-structured and concessions are being given. In the rural area, attempts are afoot to close down bank branches and hand over rural banking to private agencies and Business Correspondents. Banks will lose control over rural banking”.

Thus banking reform measures are retrograde but Government is still pursuing the same and hence our protest, said Venkatachalam.

The Unions including Bank Employees' Federation (BEF) which will also join the strike and protest, have said that the Government should refer the Bill to the standing committee on finance.