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CIRCULAR
NO.26/124/2012/11 28th April, 2012
Dear Comrades,
à Cabinet approves Banking Law Amendment Bill as
revised by the Standing Committee
à
May go to the Parliament for approval
à
Get ready for programmes – UFBU’s call
We reproduce herein the text of
UFBU’s Circular No. 7 on the above issue along with the UFBU’s letter to the
Finance Minister. Units are requested to
keep in readiness to observe the programmes as would be called by the
UFBU/AIBEA.
With greetings,
Yours Comradely,
C.H.VENKATACHALAM
GENERAL SECRETARY
UFBU
CIRCULAR NO: 7 27th April, 2012
PROPOSED
AMENDMENT TO BANKING LAW BILL
We have to-day sent a
communication to the Hon’ble Finance Minister; Govt. of India, expressing our
concern over the developments in regard to the Amendment to Banking Law
(Amendment) Bill, proposed by the Government and cleared by the Union Cabinet,
despite our stiff opposition. A copy of
our communication is enclosed.
2. We note to advise further developments in
the matter. We also propose to organize
protest demonstrations all over the country in the event of the Government
pursuing their attempt to place the same before the Parliament for approval. We
may also stage Dharna before the Banking Dept. Government of India, New Delhi
on the day, when the bill will be moved in the Parliament. We will advise
further details after having discussions on the subject in the next meeting of
the UFBU to be held on 10th May, 2012 at Bangalore or earlier,
depending upon the developments in the matter.
3. All our constituents/members are
therefore requested to be in readiness to jump into action at a short notice.
Respected Sir,
BANKING LAW (AMENDMENT) BILL
CLEARANCE BY THE UNION CABINET
We are surprised to note that, the Union Cabinet is
reported to have cleared the amendments proposed to the Banking Law Bill, which
contains several adverse features in the name of the reforms in the financial
sector, with a view to pave the way for the handing over the control of the
Banking Industry to the Private Sector in the days to come. We have glaring
examples before us as to how the new Generation Private Sector Banks have been
affecting the economic development of the country at the grass root level, by
ignoring the efforts of the Government for the amelioration of the millions and
millions of masses living below the poverty line. The dilution of the
Government control on the Banks will adversely affect the social banking in our
country.
2. The constituents of UFBU, all along have
been opposing these initiatives and have protested when the Government
appointed the Standing Committee to examine the draft amendment and has
strongly advocated that the ownership of the Government and control over the
Banking Industry should be with the Government and that the RBI should have
strong regulatory mechanism, so that the Banks are able to function freely in
the interest of the common man. However, we now understand that the proposed
amendments are for:-
·
An increase in the voting rights of an entity in a Private Bank to 26%
from 10%, at present.
· An increase in the voting rights of an entity in a Nationalised Bank to
10% from the existing one per cent.
· Power to the RBI to supersede the board of a bank for up to a year if
it is deemed not working in the depositors’ interests.
· Power to the RBI to ask for information from banks’ associate companies.
· Taking bank mergers and acquisitions out of the ambit of the CCI etc.
3. We oppose to each and every provisions
proposed for the amendment of the Banking Laws (Amendment) Bill and Bank
Nationalisation Bill, which will go against the interest of the country. The
performance of the Public Sector Banks is demonstrated to the entire world and
it withstood the impact of the US economic recession due to its intrinsic
strength and strong fundamentals that allowed the economy to sustain all ill
effects of the worldwide economic recession. Now the attempt of the Government
to create an environment for easy take over of Public Sector Banks by Private
Sector, the free for all provisions enabling merger without any control by CCI
and RBI etc., are bound to affect the interest of the Banking Industry which
has served the nation in a remarkable way for over 40 years ever since the
Nationalisation of the Banks by the Government and supported by the SBI group
as a whole.
4. We therefore urge upon you to kindly ensure
that the amendments proposed by the Government are not pushed through in the
Parliament in the interest of the nation.
We are confident that the issue will be taken up seriously, to avert any
agitation by the constituents of the United Forum of Bank Unions that
represents the entire banking industry having solid support of over one million
employees, in the country.
5. Please treat the matter as urgent.