AIBEA CIRCULAR NO. 26/159/2012/46 dated: 11th December, 2012 :
Dear Comrades,
¶ Govt. in a hurry to push through the Banking Reform
Bills
¶ Get ready for actions to register your protest
¶ Prepare for strike action at short notice
All our units and members are aware that we
have been consistently fighting against the agenda of the Government to foist
banking reforms aimed to boost private banking and dilute public sector
banking. The various steps being taken by the Government are all with this
objective.
Banking
Laws Amendment Bill
: As a part of these reforms, units are
aware that right from March, 2011, the Government is trying to get the Banking
Laws Amendment Bill, 2011 passed by the Parliament. This Bill covers amendments
to Banking Regulations Act and Banking Companies (Acquisition & Transfer of
Undertakings) Act, 1970/1980. The
proposal is to enable merger of Banks easier, allow more voting rights to
shareholders both in private banks and in public sector banks to step up their
influence, to allow Banks to engage in Forward Contract transactions, etc.
In the original Bill, the Government wanted
to allow 100% voting rights in private Banks to enable them to be taken over by
Corporates and FDIs. Due to our repeated
strike actions and the efforts of leaders like Com. Gurudas Dasgupta in the Standing
Committee, that the Government has now proposed to amend it from 10 to 26%
instead of 100% voting rights.
One
more Bill:
In addition, another Bill ( Enforcement of Security Interest and Recovery of
Debts Laws Amendment Bill 2011) was introduced to amend the Sarfaesi Act, Debt
Recovery Act. This Bill was to enable the Banks to convert their Bad Loans/NPAs
into share capital of the borrower company.
Instead of stringent measures to recover the bad loans, the idea is to
favour the defaulting company by waiving their loans and treating the loan
amount as investment in the equity capital of the defaulter company. This
Bill came up for discussion in the Lok Sabha on 10th December,
2012. Various MPs spoke and raised their
objection.
Lashing
speech by Com. Gurudas Dasgupta: Speaking
against the Bill, Com. Guruduas Dasgupta asked why the bad loans in the Banks
are increasing alarmingly, why there cannot be a special court and expeditious
trial of all the willful defaulters who have stolen people’s money and cheated
the country, why should the criminality of the corporate defaulters be
condoned, why the list of bank loans defaulters not be published, etc.
Walk
out by MPs
: But the Government was adamant to get
this Bill passed. Hence, the entire MPs
belong to NDA led by BJP, the CPI, CPI-M and the entire Left, the TMC, AIADMK,
etc. staged a walk out. But shamefully,
instead of referring the Bill to the Standing Committee, the Government got the Bill passed with the
remaining MPs. Thus the flood gate has been opened to convert bad loans into
the capital of the very same borrower.
The Government, in the same way, wanted to
push through the Banking Laws Amendment Bill also. But Shri. Yeshwant Sinha (BJP) and others
raised vehement protests and that the Government is even violating the
procedure by presenting the Bill with new amendments which were not referred to
the Standing Committee. The bill thus
could not be taken up for discussion yesterday.
Today also, the government again listed the Bill for passage but the
Bill could not come for passage.
Amendments
moved: In the meantime, Com. Gurudas Dasgupa CPI,
Prof. Sk Saidul Haque, CPI-M, Com. Prabodh Panda, CPI, Com. Ramachandra Dome,
CPI-M and Com. Khagen Das, CPI-M have moved the following amendments to the proposals
of the Government.
a)
To
delete the proposed Clause 3A in BR Act on Forward Contract business by Banks.
b)
To
delete the clause on increasing the voting rights from 1 to 10% in PSBs
c)
To
allow voting rights in private Banks only upto 10.1% instead of 26%.
d)
To
not to apply the new Section 2A on exemption from Competition Commission for
merger of Banks in PSBs.
e)
To
not allow reduction in Government’s equity in Banks even if the Paid up Capital
is increased.
Units are aware that these are the demands
of AIBEA also. We are thankful to these
MPs who have raised our viewpoints and moved these amendments.
But the Governments appears to be
belligerent and somehow wants to bulldoze and get the Bill passed.
Merger
moves: Units may also be aware that recently the
Government has sent some unilateral guidelines to the Banks grouping them into
few Groups in the name of working out uniformity, etc. But the hidden agenda is to work out possible
mergers. The open speech of Finance Minister in the recent Bankers
conference of IBA that Bank mergers should take place has added weightage to
these moves.
GET
READY FOR STRIKE
: Hence, comrades, we must get ready for
protest action. We are planning for
strike action at short notice if the Government still goes ahead with the
Bill. We are in touch with other
unions. Be ready and await our call.
With greetings
Yours Comradely,