Bank Union AND Bank Management Already Work In Nexus With Other For Mutual Benefits

Bank unions should work together with managements: RBI Dy Gov
Kochi: RBI Deputy Governor K C Chakrabarty on Sunday urged Bank unions to work together with managements to come out with an integrated system to make banking services available to everyone.

"The time has come that Bank unions should work with managements to come out with an integrated service to make banking services available to everyone," he said.

He was speaking at a seminar on 'Banking as fundamental right of people', organised as part of the 27th National conference of All India Bank Employees Association here.

"We need strong and responsible trade unions in the banking system so that trade union and managements can fight market forces and help in making services available to all. Banking services should be available at everyone's doorsteps," he said.

Pointing out that the trade union movement had played an important role in making service of bank employees respectable in the sector, he said, "We want a strong trade union movement in the banking system as it is a pre-condition for a strong management in the bank."

Banking is not a service provided by state. It has to be provided on commercial lines. There is need to bring down transaction costs, to make it affordable.

"We need to collectively work to bring down transaction cost so that banking service will be affordable," he said, adding there was also need to provide fair, transparent and reliable service.

If banking is to be made a fundamental right, this rule would be applicable not only to public sector banks, but to every other bank including private and cooperative, he said.

Opening of bank accounts is a fundamental right in the US, UK and European countries.

"In India, opening a bank account cannot be refused. But it still does not happen. Even after 40 years of nationalisation of banks, we are saying banking should be a fundamental right.

"Banking industry is the only industry where workmen have representation in the board. But still why has banking not gone to everybody? Why it has not gone to everyone? We are collectively responsible for this situation," he added. 
http://zeenews.india.com/business/news/finance/bank-unions-should-work-together-with-managements-rbi-dy-gov_69909.html

My Comment

Bank Union AND Bank Management Already Work In Nexus With Other For Mutual Benefits,. There was a time when they used to be at daggers drawn to each other. During last two decades there has been a paradigm shift in this attitude. Earlier bank unions used to protest all ill activities of the management and there was a hidden fear in the minds of corrupt leaders and we observe that banks were comparatively safer in those days if we assess the present health of banks honestly.

In the name of reformation i.e. after the launch of reformation policies, leaders of bank unions slowly started working cohesively for their mutual self interest. Corrupt leaders keep leaders of unions happy to perpetuate their corrupt activities .Large scale corruption in recruitment, promotion, transfer, lending, project financing, waiver of loan, awarding of contractual works compromise settlements with willful defaulters etc have been found and pointed out so many times by several whistle blowers. But unfortunately the reign of injustice and rule of corrupt leaders go unchecked and unbridled only because union leaders are also shareholders in such fraudulent activities

This is why volume of bad assets grew due to bribe based lending in all government run banks. Union leaders never objected to illegal and unethical activities of the corrupt top bankers only because they too served their vested interest indirectly by keeping mum on all cases of corruption. Union leaders never stop opening of accounts and neither do they promote good culture. They spend their most of the time in saving corrupt officers who are corrupt and exposed by some media men or some aggrieved customers or by some aggrieved staff of banks.

In the past union leaders used to talk to management of unjustified transfers and unjustified rejection of good officers but in the modern era they use to plead for saving bad officers and plead for good posting of bad officers , recommend to interviewers for selection and  promotion of bad officers , recruitment of their friends and relatives and at the same  time support top bankers secretly  in rejection of good officers and transfer of good officers to critical places if they do not flatter to union leaders. As such union leaders are second side of the same coin which is represented by top ranked officers of bank management.

This is why actions are never taken against corrupt bankers, accountability is never fixed against top bankers whose bad decisions caused rise in NPA and none of corrupt officer is punished when he is found to indulge in fraudulent activities or irregular lending if these corrupt officers are flatterer of union leaders as well as that of big bosses..

I therefore like to say respected Mr. Chakravorty that union leaders are already working in support of each other, but not for the welfare of customers or for the benefit of staff but to serve the malicious purpose of each other.

http://importantbankingnews.blogspot.in/2013/02/bank-union-and-bank-management-already.html