 "Bank unions oppose RBI's move to give licences to India Inc")
All India Bank Employees Association (AIBU) has asked the Election Commission not to give the go ahead to RBI to grant banking licences to corporate houses, arguing that it is a retrograde move.
The union said that with the general elections coming up, RBI's hurry in this regard overlooking the views of the Parliament would be unfair.
RBI has already sent its recommendations to the Election Commission, seeking its permission to grant bank licences to private business and corporate houses.
C H Venkatachalam, general secretary, AIBU in a letter to the Election Commission pointed out that the Parliamentary Standing Committee on Finance, after threadbare deliberations, submitted its "unanimous" report saying that banking is a highly leveraged business involving public money and public welfare, and was of the opinion that it will be more in the fitness of things to keep banking and industry separate.
The Standing Committee on Finance consisted of 31 members of Parliament representing almost all political parties including Yashwant Sinha of BJP, Rahul Gandhi of Congress, Gurudas Dasgupta of CPI and MPs from CPI-M, TMC, SP, BSP, Shiv Sena, NCP, BJD, AIADMK and others.
It is clear that there is a political consensus that granting banking licence to the corporate industrial houses would result in conflict of interest, said Venkatachalam. He alleged that very large part of the bad loans in banks today are constituted by loans taken by the private corporate sector and business houses, most of which are willful defaults.
He added that prior to nationalisation of the banks in 1969, most of the banks in India were owned by one or the other industrial or business house, but their mismanagement and abuse of people's money resulted in nationalisation of banks.
"Handing over banking licenses to corporate and business houses is a clear retrograde move. Particularly, when the country is moving towards general elections to elect a new Parliament, RBI's hurry in this regard overlooking the political views of the Parliament would be unfair," said Venkatachalam.
The union said that with the general elections coming up, RBI's hurry in this regard overlooking the views of the Parliament would be unfair.
RBI has already sent its recommendations to the Election Commission, seeking its permission to grant bank licences to private business and corporate houses.
C H Venkatachalam, general secretary, AIBU in a letter to the Election Commission pointed out that the Parliamentary Standing Committee on Finance, after threadbare deliberations, submitted its "unanimous" report saying that banking is a highly leveraged business involving public money and public welfare, and was of the opinion that it will be more in the fitness of things to keep banking and industry separate.
The Standing Committee on Finance consisted of 31 members of Parliament representing almost all political parties including Yashwant Sinha of BJP, Rahul Gandhi of Congress, Gurudas Dasgupta of CPI and MPs from CPI-M, TMC, SP, BSP, Shiv Sena, NCP, BJD, AIADMK and others.
It is clear that there is a political consensus that granting banking licence to the corporate industrial houses would result in conflict of interest, said Venkatachalam. He alleged that very large part of the bad loans in banks today are constituted by loans taken by the private corporate sector and business houses, most of which are willful defaults.
He added that prior to nationalisation of the banks in 1969, most of the banks in India were owned by one or the other industrial or business house, but their mismanagement and abuse of people's money resulted in nationalisation of banks.
"Handing over banking licenses to corporate and business houses is a clear retrograde move. Particularly, when the country is moving towards general elections to elect a new Parliament, RBI's hurry in this regard overlooking the political views of the Parliament would be unfair," said Venkatachalam.