Bank unions oppose move to grant licences to corporates-Business Line 13.12.13
THIRUVANANTHAPURAM, DEC. 12:
United Forum of Bank Unions (UFBU), which has declared an all-India strike on December 18, is of the view that corporates should not be given banking licences.
They were in the first place responsible for the collapse of many banks during 1947-1969, according to M.V. Murali, Convenor, UFBU.
He is also General Secretary of both National Confederation of Bank Employees and All-India State Bank of India Staff Federation.
FOREIGN BANKS
Similarly, the proposal to give foreign banks ‘near-national’ status is also not in the interest of the country.
Similarly, the proposal to give foreign banks ‘near-national’ status is also not in the interest of the country.
In the run-up to the one-day all-India strike, employees and officers will wear black badges while on duty two days ahead.
They will take part in mass demonstrations, rallies, processions and public meetings at all centres the next day.
Murali said here that immediate wage revision and stoppage of banking reforms are the two main demands of employees.
URGENT DEMANDS
Unabated inflation has seriously eroded employee income. Consumer Price Index has gone up by almost 2,400 points since November 2007 (1960=100).
Unabated inflation has seriously eroded employee income. Consumer Price Index has gone up by almost 2,400 points since November 2007 (1960=100).
Also, the job profile has undergone a sea change. There is a dire need for properly remunerating them with adequate increase in wages.
The 9th bipartite settlement on revision of wages and service conditions covered the period from November 1, 2007 to November 31, 10 2012.
The unions submitted a common charter of demands for employees and officers before the date of expiry of the agreement. But Indian Banks Association (IBA) is delaying a settlement.
DECISION DELAYED
Five rounds of talks were held last year but the IBA has not come out with any clear proposal as to the quantum of increase, Murali said.
Five rounds of talks were held last year but the IBA has not come out with any clear proposal as to the quantum of increase, Murali said.
As for instances of wrong policymaking, the Centre amended the Banking Regulation Act in December 2012 lifting the cap on voting rights of shareholders.
Existing voting rights of one per cent in public sector banks and 10 per cent in private banks stand revised to 10 per cent and 26 per cent respectively.
Murali said that it would now be possible for five or six corporate houses to get control of public sector banks. This will compromise the very idea of nation development.
NEED FOR REGULATION
Banks in India have deposits of nearly Rs 75 lakh crore which represents the hard-earned savings of the people of the country.
Banks in India have deposits of nearly Rs 75 lakh crore which represents the hard-earned savings of the people of the country.
Naturally, banking institutions have to be properly regulated so as to protect the resources. In another worrisome development, the RBI has announced in a discussion paper that the Government’s equity capital in the banks can be reduced to less than 51 per cent.
It also proposed that banks may resort to mergers to become international institutions.
Murali said that these will bring about a situation where limited resources available for nation development will henceforth need to be shared with foreign corporates.
Other employee demands pertained to urgent need for recruitment; restoring appointments on compassionate grounds; and stoppage of outsourcing of core banking services.
Bank loan defaulters to have a tough time
The Reserve Bank of India plans to deal with Bank loan defaulters and borrowers who are not cooperative in a more effective manner.
On Wednesday, in the Capital, at the Delhi Economic Conclave, Raghuram Rajan, Governor of RBI stated that for such borrowers it is going to be a very expensive affair for them to borrow from the banking system.
As a major aspect of the steps to address issues of fiscal anxiety, RBI will additionally stipulate autonomous valuation for substantial worth rebuilding. The national bank likewise plans to assemble fitting motivations for banks to "agree collectively" on rebuilding suggestions.
RBI to Focus on inflation
RBI's center will stay on inflation, Rajan said dropping a reasonable clue on the feasible stance at the approaching arrangement survey meet on December 18. On development, Rajan said that monetary development appears to be stabilizing, yet included that it was so early there was no option call a bottom.
No comments:
Post a Comment