Bank strike against reforms unjust: Govt

The Union government today said the strike announced by the United Forum of Bank Unions (UFBU) against the proposed financial sector reforms is “uncalled for and unjustified” and it would cause great inconvenience to people, driving customers to private sector banks.

The UFBU had threatened last month to go on a two-day strike on September 24-25. Referring to the privatisation of public sector banks (PSBs), the finance ministry said. It will not lead to the transfer of control and management of these banks to the private sector.

The government would hold 51 per cent of equity in PSBs and the features of public sector would be preserved.

The ministry, in a statement, also added that the initiatives for merger of PSBs have to come from the management of the banks themselves and “no specific directions in this connection have been issued by the government or the central bank. It has been only emphasised that the process of consolidation is necessary to improve the state of competitiveness of Indian banks globally”.