Thu. Mar 28th, 2024
Privatization of Public Sector Bank

In the past two days, Nationalized Banks’ employees went on protest against Privatization. Finally, on Tuesday, the strike concluded, but Bank Unions warned the Centre of more uproar if they continue with the privatization of Public Sector Banks. 

The nation witnessed the disruption in services like cash withdrawals, deposits, cheque clearances, remittances and loan approvals, hitting customers badly. Even the impact reached the business transactions as well as government treasury operations.

10 Lakhs Bank Employees’ Joined The Protest

The United Forum of Bank Unions (UFBU) having other 9 bank unions under its umbrella–  AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF, INBOC, NOBW and NOBO –had called for a strike to protest against the Centre’s decision of privatization two more nationalized banks.

The dissatisfaction and concerns amongst the employees arose after the announcement by Finance Minister Nirmala Sitharaman in her Union Budget speech for 2021-22, stating two more PSBs in a row to become privatized. The Centre is ambitious to generate ₹ 1.75 lakh crore through a disinvestment drive. The minister had also announced that the overall disinvestment project would be completed by the Financial Year of 2022.

In a statement, the Centre of Indian Trade Unions (CITU) said,  “Around 10 lakh bank employees and officers participated in the strike called by the United Forum of Bank Unions (UFBU), paralyzing the entire banking sector.

The joint platform of central trade unions and almost all independent industrial federations in the country extended full support to the strike. Tens of thousands of workers participated in the demonstrations across the country, in support of the strike.”

In 2019, the union government had sold the majority stake of IDBI Bank to LIC, thus making it private. On the other hand, mergers of 14 other public sector banks happened in the last four years.

Bank Unions and their Views

AIBEA General Secretary C H Venkatachalam, in a statement to PTI, said, “ Strike was a complete success, employees and officers stood with us. The way they participated and raised slogans shows their disapproval of the government decision very clearly.

“We got support from all trade unions, some farmer organizations, and a lot of political parties have supported us”.

He further added that the bank unions is trying to convince the Centre that the proposed move in against the welfare of the economy. If the Centre is having difficulties in running the public sector lenders, the bank unions will try to address those concerns.

A Press Release by the Centre of Indian Trade Unions (CITU) was released congratulating the nationwide participating employees and officers for protesting “against the BJP government’s moves to privatize public sector banks”.

It further expresses its concern and reads, “CITU calls upon the entire working class, the toiling people and all sections of patriotic people of the country to actively support and join the struggle against the disastrous decision of the BJP government to hand over public assets, the people’s wealth to a handful of their corporate cronies. The fight to save the country from corporate greed shall intensify in the coming days”.

CITU along with the joint trade union platform has extended their support to the nationwide strike of the General Insurance employees on 17th March (Wednesday), and that of the LIC of India employees on 18th March (Thursday), against privatization. 

Finance Minister Statement Amidst Strike 

Union finance minister Nirmala Sitharaman, on Tuesday while addressing the media, has given the surety that privatization of all the Public Sector Banks are not on cards, and the interest of the employees will be kept in consideration for the banks turning private. 

While addressing the media, on Tuesday, she said, “The decision of Privatization is a well thought out decision. We want Banks to get more equity… We want banks to meet the aspirations of the country.” 

“Public sector enterprise policy very clearly says that we will continue with PSBs. Interests of the workers will be protected.” She further adds that, “Those banks which are likely to get privatized, the interest of every staff member will be protected. Interest of existing employees will be protected at all costs”.

By Harshita Sharma

I bring to you updates from business, policy and economy spectrum.