Bank Union Circular On Strike / Demonstration

ALL INDIA BANK OFFICERS' ASSOCIATION

Circular Letter No.5:VI:2014

May 19, 2014

To:

ALL UNITS / STATE COMMITTEES

Comrades,

ð BACKDATED BACK DOOR PRIVATISATION OF BANKING – BY STATE BANK OF INDIA

ð PRIOR TO PUBLICATION OF NAYAK COMMITTEE ON BANK’S PRIVATISATION

ð DEMONSTRATION ON 23.05.2014

State Bank of India, entered into an agreement with Reliance Money Infrastructure Ltd., [RMIL] on 25th February 2014, giving the benefit of backdating with effect from 5th October 2013, to handle the front office Banking functions, as business facilitator / correspondent. It is to be taken note that “Reliance Capital” was one of the aspirant for the new Banking license, which was not considered by RBI. Partial privatisation of SBI is already set in motion, by this exercise of outsourcing through Business facilitator and Business correspondent in SBI.

Nayak Committee, appointed by the RBI, prominently recommended privatisation of Banks, reduction of the Government capital in Public Sector Banks from 51%, merger of Banks etc. The main reasons attributed for the same are Basel III – capital requirement + increasing Bad loans in the Banking Industry.

Calling upon the all authorities concerned to reject the Nayak Committee, a demonstration call was given on 21.05.2014 all over the country, subsequently postponed to 23.05.2014 [ Friday ] by UFBU.

Keeping the seriousness of the issues involved, AIBOA, AIBEA, BEFI, INBOC and INBEF have decided to adhere to the call to hold the demonstrations at all centres, on 23.05.2014 [Friday] to withdraw the Nayak Committee as it is anti-people and anti-public sector in content.

We call upon the members to mobilise the workforce for the demonstration on 23.05.2014 and make it a memorable success.

Yours comradely,

/S.NAGARAJAN/

GENERAL SECRETARY

Collected from Facebook

ALL INDIA BANK EMPLOYEES’ ASSOCIATION ( AIBEA )
ALL INDIA BANK OFFICERS’ ASSOCIATION ( AIBOA )
BANK EMPLOYEES FEDERATION OF INDIA (BEFI)
INDIAN NATIONAL BANK EMPLOYEES FEDERATION (INBEF)
INDIAN NATIONAL BANK OFFICERS CONGRESS (INBOC)

TO ALL UNITS AND MEMBERS: 19TH May, 2014
Dear Comrades,
· Oppose RBI’s Nayak Committee Report
· Defeat Bank privatization attempts
· Hold countrywide demonstration on 23rd May, 2014.

Wholesale attempt to privatize Banks:

Units and members are aware that the RBI appoint P J Nayak Committee has recently submitted its Report with various recommendations like privatization of Banks, reducing Government’s capital in PSBs to less than 50%, merger of public sector banks, transferring the ownership of public sector banks to an Investment Company, Repeal of Bank Nationalisation Act, Voting rights of shareholders in public sector banks to be increased from 10% to 26%, etc. In short, the Committee wants removal of Government’s control and to hand over the Banks to private hands. They want to go back to pre-1969 model of private sector banking.

Hold protest demonstrations on 23rd May:

To express our strong protest and objection to the Nayak Committee recommendations and to demand rejection of the Report, we call upon all our units and members to organize and hold countrwide demonstrations after office hours on 23rd May, 2014 ( Friday ).

MAIN RECOMMENDATIONS OF
RBI’s P J NAYAK COMMITTEE REPORT

§ Privatise the Public Sector Banks
§ Government’s capital should be reduce to less than 50 %
§ Merger of Public Sector Banks Banks
§ Design a new governance structure
§ Better compensation for Chairman and EDs
§ Keep PSBs out of CVC, RTI Act, etc.
§ Bank Investment Company should be created under Companies Act which will control the Banks
§ The CEO of BIC should be a private equity investment professional
§ Ownership of Banks should be transferred to this BIC
§ Government should not issue any regulatory instructions to Banks.
§ Bank Nationalisation Act should be repealed and Banks should be covered by Companies Act.
§ Ownership functions should be handed over by the Government to the BIC
§ Government should not appoint any Directors in the Banks. BIC will do that.
§ RBI Nominee Directors in the Banks should step down.
§ Voting rights should be increased to 26 %

AIBEA – AIBOA – BEFI – INBEF – INBOC