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Ground Report | New Delhi: Privatisation of banks in India; On one hand the Modi government is preparing for the privatization of banks, on the other hand, about 9 lakh employees of public sector banks protested against it nationwide.
ALSO READ: Explained: Why govt. is planning to privatise public sector banks?
Viral poster story
Recently a poster is going viral on social media in which it is written in Hindi on the poster that “Special information for the customers who go to the bank saying that the bank is ours, runs with our money. The government is going to sell your bank in Parliament. Then don't say that it was not told".
In fact, the Central Government had listed the Banking Laws Amendment Bill 2021 for introduction in the current session of Parliament. Two public sector banks are to be privatized through this bill. The government can reduce its minimum stake in these banks to a percentage. Bank employees have been on strike for the last two days across the country against the decision to privatization of banks.
ALSO READ: Explained: Why #StopPrivatizingIndia trending on twitter?
Bill to privatize public sector banks
According to the news of NDTV, the purpose of the bill, to privatize two public sector banks, it is necessary to make amendments to the Banking Companies (Acquisition and Transfer of Companies) Laws of 1970 and 1980, as well as incidental amendments to Banking. Regulatory Act of 1949.
United Forum of Bank Unions (UFBU) is opposing the proposed decision to privatize banks. Banks 9 and unions come in this union. Due to the strike, customers of banks like SBI, PNB are facing problems in banking operations.
Member of Parliament Varun Gandhi said on the issue of privatization of banks, “As we push towards privatising public sector banks, we must take pause to note that they employ almost a million, while helping self-help groups, providing rural banking and giving loans to SMEs. All things that private banks may not pursue.
privatisation of banks in India
Earlier, the Confederation of Banking Officials of India (AIBOC) said that the privatization of public sector banks (PSB) would lead to job losses, branch closures and financial exclusion.
“The mergers of PSB have reduced the number of public sector banks from 27 to 12, starting the process of laying off employees and closing bank branches; the total employee strength of PSBs has fallen from 8.57 lakh in March 2017 to around 7.7 lakh in March 2021, ”the country's leading organization of banking officials said in a presentation, adding that the number Total PSB branches decreased by 3,321 between March 2017 and September 2021.
At an event in New Delhi, AIBOC Secretary-General Soumya Datta added that the privatization of PSB would accelerate these trends and reduce employment opportunities for young people. The SC / ST / OBC sections would look private because, unlike the public sector, the private sector does not follow reserve policies for the weaker sections, he noted.
The statement comes in the context of the government's listing of the 2021 Banking Laws Bill (Amendment) at the current winter session of parliament. The bill seeks to amend the Banking Business (Business Acquisition and Transfer) Laws of 1970 and 1980 and the Banking Regulation Act of 1949 to facilitate the privatization of public sector banks.
The Modi government is often criticized for the privatization of the public sector. There are frequent reports on Prime Minister Narendra Modi's close relations with the capitalists. Serious questions are also being raised on the government regarding the privatization of banks. (privatisation of banks in India)
What will happen to the employees?
The political parties in power have been avoiding converting public sector banks into private banks, as it also threatens the jobs of lakhs of employees. However, the present government has already said that in the event of a merger or privatization of banks, the jobs of the employees will not be lost.
Bank of India has 50 thousand employees, while Central Bank has 33 thousand employees. There are 26 thousand employees in Indian Overseas Bank and 13 thousand in the Bank of Maharashtra. In this way, in total there are more than one lakh employees in these four government banks.
The Central Bank was formed in 1911. It has a total of 4,969 branches. Indian Overseas Bank was established on 10 February 1937. It has a total of 3800 branches.
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