Govt discusses Banking Bills with unions

Under pressure from the Left allies to talk to trade unions on crucial reforms programmes, Finance Minister P Chidambaram and Parliamentary Affairs Minister Priyaranjan Dasmunsi held discussions with representatives of Left-backed trade unions and bank employees' unions on banking reforms today.

Although there was no headway on the crucial Banking Regulation (Amendment) Bill, 2005, the unions conceded to the government's proposal to refer two other Bills ""Payment and Settlement System Bill, 2006, and State Bank of India Subsidiary Bank Laws, 2006 "" to the Standing Committee of the Parliament.

The first Bill pertains to the setting up of a clearing house and the second, to the reduction of government's holdings in SBI subsidiary banks to 51 per cent, according to CPI MP and AITUC leader Gurudas Dasgupta who attended the meeting.

He said that unions were opposed to both these Bills as also the Banking Companies and Financial Institutions Law Bill, 2005, which figured in today's discussions.

"It was the first time that the government engaged the banks in talks. If the government does not listen to our views, there will be more strikes by bank employees," said Dasgupta who attended the meeting.