Bank Unions protest against RBI's decision to give new banking licence
Union to meet on April 19th to take a call on further programmes
The All India Bank Employees Association (AIBEA) has objected the Reserve Bank of India (RBI's) decision to give new licence. The Union said that on April 19th its officer bearers will meet in Punjab to next course of action against RBI's decision.
In a statement today, C H Venkatachalam, general secretary, AIBEA said that it is a matter of concern that despite protests, the Election Commission 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.
On April 2, RBI granted approval of licences for IDFC Ltd and Bandhan Financial Services.
RBI Governor has further stated that it will follow an 'on tap' policy implying that more and more licenses will be given to private players particularly to the corporate houses who are waiting in the wings.
"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 tract record is also not appreciable," said Venkatachalam, who expressed strong protest against the RBI decision.
AIBEA Office bearers meeting has been convened at Jalandhar in Punjab on April 19, when further programmes on this issue will be taken, he said.
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