Bank Union Protest Day On 18th March Against New Bank License Policy

Bank unions call for nationwide protest on Mar 18 against new bank licenses policy

New Delhi: Bank unions have called for a nationwide protest on March 18 against the Reserve Bank of India's new banking licenses policy that has paved way for industrial houses to set up banks, the Business Line reported on Saturday citing a union official.

The protest will be held under the banner of United Forum of Bank Unions (UFBU), a representative body of nine bank unions, the daily cited C H Venkatachalam, general secretary, All India Bank Employees Association, as saying.

The UFBU has been protesting against the RBI's move to open up the sector to private entities for fear of privatization of nationalized banks and mergers and acquisitions.

The body even participated in the two-day nationwide strike recently on February 20-21 to protest against the RBI's new banking licenses norms, which were not finalized then.

The RBI came out with the final guidelines on the new banking licenses on February 22, opening up the sector to both private and public sector companies and non-banking finance companies.

Various companies, including L&T Group, Aditya Birla Group, Mahindra Group and Religare Enterprises Ltd, have expressed keen interest in entering the banking sector.

Interested companies have to submit their applications to the RBI by July 1, 2013.

http://in.finance.yahoo.com/news/bank-unions-call-nationwide-protest-133052147.html

Following is the message given by Union leader on facebook

Dear Comrades,

Ø PROTEST AGAINST RBI’s NEW BANK LICENSING POLICY TO ALLOW CORPORTE AND BUSINESS HOUSES TO START BANKS,

Ø HOLD MASSIVE DEMONSTRATIONS ON 18TH MARCH, 2013

Ø UFBU’s CALL


We reproduce herein the UFBU’s Circular No. 6 calling upon all unions to hold massive demonstrations on 18th March, 2013 against the recent announcement of the RBI regarding the new Bank licensing policy to permit private business, industrial and corporate houses to start their own Banks.

In our country, we know the inglorious and ignominious track record of the private Banks in the past. In the recent years, the world has witnessed how so many private banks including the so called giants and ‘too big to fail’ financial institutions have failed and fallen like a pack of cards. Everyone knows and acknowledges that it was only that our banks were in public sector, our banking system could remain insulated from the global crisis that affected so many countries and their economies. That is why from our recent 27th Conference, we have demanded that all private banks in our country should be brought under public sector. But it is an irony that the Government, instead of strengthening the public sector banks are boosting and encouraging private sector banks and foreign and corporate investments in banks.

As an organization that played a leading role in campaigning, demanding and fighting for nationalization of Banks, we have to play an equally leading and militant role in the present times to when there are attempts to change the track.

We request all our unions at all levels to take initiative to implement the demonstration programme on 18th March successfully and unitedly.

With greetings,
Yours Comradely,

C.H. VENKATACHALAM
GENERAL SECRETARY
Dear Comrades,
§ PROTEST AGAINST THE NEW BANK LICENSING POLICY

§ PROTEST AGAISNT BANK LICENCE TO CORPROATE HOUSES

§ HOLD MASSIVE DEMONSTRATIONS ON 18-3-2018

From the UFBU we have been demanding a vibrant banking sector in our country in order to subserve the socio-economic needs and keeping the basic national economic development in mind. While the public sector banks in our country, for the past more than five decades, have immensely contributed to these social objectives, the Government has been following the policy of liberalisastion and banking reforms for the past two decades. Because of this, the Government has been encouraging private sector banking and diluting the role of public sector banks in many ways. Even the equity capital contribution of the Government in the PSBs have been brought down. Recently, even the voting rights of private capital investors in PSBs have been increased 10 times from 1% to 10%. For the public sector Banks, the Government is toying with the idea of consolidation and mergers but in the case of private banks and foreign banks, they talk of further expansion and encouragement.

As a part of these reform measures, recently, at the behest of the Government, the RBI has announced their new Bank Licensing Policy by which the private industrial, business and corporate houses will be permitted to open their own Banks.

Eligibility norms: Any private sector company including Non-Banking Finance Companies can open a Bank. Total capital requirement would be Rs. 500 crores out of which, the promoter company need to bring only Rs. 200 crores which can be further reduced to Rs. 75 crores after 5 years. Foreign capital will be allowed upto 49% in these Banks which can be increased to 74% after 5 years.

In a country where we find that 100 top billionaires have a minimum wealth of Rs. 5,000 crores each and with a total wealth of Rs. 12,50,000 crores ( 250 billion $), we can imagine the havoc they will play in the banking sector if they are allowed to enter banking business. These were the people who were owning banks in our country and who abused and misused the people’s savings for their own interests. That is why banks were nationalized in national interest. It is tragic that the government is now reversing the clock by giving them license to start their Banks.

The world over the experience is very bitter and most of the cases there has been a conflict of interest and mix up of people’s savings with their own business needs. Many sensible Economists have been pointing out the risks and dangers of corporates doing banking business and yet the Government is insensitive and is bent upon handing over banking license to them. Thus the flood-gate is sought to be opened.

Clearly, the move is not in the interest of our economy. The need is to strengthen the public sector banks and not boost private corporates into the banking sector. In consistence with our avowed policies and stand-points, UFBU opposes this unwarranted move of the Government.

We need to express our protest and opposition to this move. Accordingly all our units are advised to under the following initial programme:

v HOLDING MASIVE DEMONSTRATIONS AND RALLIES IN ALL STATE CAPITALS AND OTHER IMPORTANT CITIES IN FRONT OF BANKS PREFERABLY BEFORE THE PREMISES OF RESERVE BANK OF INDIA WHEREVER POSSIBLE.

v THE PROGRAMME SHOULD BE ORGANISED JOINTLY BY THE LOCAL UNITS OF UFBU.

v THE DEMONSTRATION SHOULD BE HELD ON 18TH MARCH, 2013.

Comrades, banks deal with people’s money. It should be for the benefit of the common masses and not for private profiteering by the corporates. Rise in protest. Further programmes will be decided by the UFBU from its next meeting.

With greetings,

Yours Comradely,