CIRCULAR NO.
2013/6
8-3-2013
TO ALL CONSTITUENT
UNIONS / MEMBERS
Dear Comrades,
§ PROTEST AGAINST THE NEW
BANK LICENSING POLICY
§ PROTEST AGAISNT BANK
LICENCE TO CORPROATE HOUSES
§ HOLD MASSIVE
DEMONSTRATIONS ON 18-3-2018
From the UFBU we have been demanding a
vibrant banking sector in our country in order to subserve the socio-economic
needs and keeping the basic national economic development in mind. While the public sector banks in our country,
for the past more than five decades, have immensely contributed to these social
objectives, the Government has been following the policy of liberalisastion and
banking reforms for the past two decades.
Because of this, the Government has been encouraging private sector
banking and diluting the role of public sector banks in many ways. Even the equity capital contribution of the
Government in the PSBs have been brought down.
Recently, even the voting rights of private capital investors in PSBs
have been increased 10 times from 1% to 10%.
For the public sector Banks, the Government is toying with the idea of
consolidation and mergers but in the case of private banks and foreign banks,
they talk of further expansion and encouragement.
As a part of these reform measures,
recently, at the behest of the Government, the RBI has announced their new Bank
Licensing Policy by which the private industrial, business and corporate houses
will be permitted to open their own Banks.
Eligibility norms: Any private sector company including
Non-Banking Finance Companies can open a Bank.
Total capital requirement would be Rs. 500 crores out of which, the
promoter company need to bring only Rs. 200 crores which can be further reduced
to Rs. 75 crores after 5 years. Foreign
capital will be allowed upto 49% in these Banks which can be increased to 74%
after 5 years.
In a country where we find that 100 top
billionaires have a minimum wealth of Rs. 5,000 crores each and with a total
wealth of Rs. 12,50,000 crores ( 250 billion $), we can imagine the havoc they
will play in the banking sector if they are allowed to enter banking business. These were the people who were owning banks
in our country and who abused and misused the people’s savings for their own
interests. That is why banks were
nationalized in national interest. It is tragic that the government is now
reversing the clock by giving them license to start their Banks.
The world over the experience is very bitter
and most of the cases there has been a conflict of interest and mix up of
people’s savings with their own business needs.
Many sensible Economists have been pointing out the risks and dangers of
corporates doing banking business and yet the Government is insensitive and is
bent upon handing over banking license to them.
Thus the flood-gate is sought to be opened.
Clearly, the move is not in the interest of
our economy. The need is to strengthen
the public sector banks and not boost private corporates into the banking
sector. In consistence with our avowed policies and stand-points, UFBU opposes
this unwarranted move of the Government.
We need to express our protest and
opposition to this move. Accordingly all
our units are advised to under the following initial programme:
v HOLDING MASIVE DEMONSTRATIONS
AND RALLIES IN ALL STATE CAPITALS AND OTHER IMPORTANT CITIES IN FRONT OF BANKS
PREFERABLY BEFORE THE PREMISES OF RESERVE BANK OF INDIA WHEREVER POSSIBLE.
v THE PROGRAMME SHOULD BE
ORGANISED JOINTLY BY THE LOCAL UNITS OF UFBU.
v THE DEMONSTRATION SHOULD
BE HELD ON 18TH MARCH, 2013.
Comrades, banks deal with people’s
money. It should be for the benefit of
the common masses and not for private profiteering by the corporates. Rise in protest. Further programmes will be decided by the
UFBU from its next meeting.
With greetings,
Yours Comradely,
(P.K.SARKAR)
CONVENOR