AIBEA Press Release - Oppose Big banking sector reforms

Com Ch Venkatachalam, Gen Sec., AIBEA

·        AIBEA OPPOSES RBI GOVERNOR’S REFORM MEASURES

·        DO NOT HAND OVER OUR BANKS TO FOREIGN BANKS

·        STRENGTHEN OUR PUBLIC SECTOR BANKS

Today RBI Governor Raghuram Rajan has said in Washington that he would soon come out with major reforms in the banking sector that will allow foreign banks to enter India in a big way and even take over our domestic banks.  This is not surprising because he has always been committed to such policies which are dictated by IMF, World Bank and the USA.

At present 80% of the banking sector in India is under public sector and another 15% under private sector and only about 5 % under foreign Banks.  Foreign Banks have never contributed for our country’s economic growth and development.  They are interested only in profits and have no role in social banking.  Some of these Foreign Banks have also been involved in various scams in the past.  Their licenses should have been cancelled but unfortunately, RBI Governor wants to encourage them.

Indian Banks deal with more than Rs. 70 lacs crores of public moneyas Deposits.  We cannot afford to liberalise our regulations because of the experience in USA and other countries where liberalised banking regulations have led to banking crisis and collapse of banks.  Hundreds of Banks in USA have been closed in the last few years.  American Government has bailed out the big Banks in their country.  But our Public Sector Banks are functioning better and do not face such crisis.  The right thing to do is to nationalise all the foreign Bank branches in India. 

We strongly oppose the RBI Governor’s proposals aimed at taking over our Banks by foreign Banks.  These are against our country’s interest.  AIBEA would launch agitation and strike if the RBI would proceed with any such proposal.

C.H. VENKATACHALAM

 GENERAL   SECRETARY

Big Banking Sector Reforms coming soon : Click here