Banks union threatens strike against RBI Internal Working Group proposals

Says depositors lose their savings, wonders whether it is prudent to allow both the lender and the borrower to be owned by the same set of people

All India Bank Employees Union (AIBEA) has opposed the recommendations made by the RBI Internal Working Group. The recommendations call for allowing large corporate and industrial houses to promote banks and permitting promoters to raise their stakes in the bank’s equity share capital from 15 per cent to 26 per cent. They also called for allowing the conversion of large Non-Banking Finance Companies owned by the Corporate Houses into full-fledged Banks and payment banks into Small Finance Banks.

C H Venkatachalam, General Secretary, AIBDA said all these suggestions and recommendations are retrograde and unwarranted in Indian conditions.  

"Our Banks represent Rs 135