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All India Bank Employees Association [AIBEA] has strongly opposed SBI move to hand over regular banking services to Reliance Money Infrastructure Limited [RMIL].
In a statement its general secretary C.H.Venkatachalam said that the Agreement provides for RMIL to identify borrowers; collect, process, and submit loan applications; promote credit groups; take up post-sanction monitoring, follow-up, and recovery. As the service provider, RMIL can also collect small-value deposits; sell micro-insurance, mutual fund and pension products; and receive and delivers mall-value remittances, opening of no-frill savings bank accounts through kiosk banking model; home loans / loans against property; auto loans; gold loans; SME loans; general purpose credit card; kisan credit card; current account; savings bank account (other than no-frill account); term deposit; recurring deposit.
While the Business Correspondent model itself is wrought with risks and deficiencies, it is really atrocious that Reliance had been handed over such vital banking functions by a major public sector bank. Itis strange that while RBI itself has not chosen to give them license to start their own Bank, SBI management has brought Reliance through backdoor method into dealing with regular banking services.
Reliance group is already under cloud in KG Basin project, etc, and handing over regular banking services to them is risky, he said. He added that AIBEA would strongly oppose the SBI decision and demands rescinding of the agreement in public interest.
