The State Banks Staff Union (Kerala Circle) has demanded the Union Government to stop the move for bank mergers.
A policy and plan which will ensure a democratic and mass banking programme by the Central Government and the various bank managements should be framed, Union president A.Jayakumar and secretary K.Raja Kurup said here in a statement.
Ever since the new Government took charge at the Centre, there has been widespread proposals to carry on the neo-liberal reforms in the financial sector, especially in the banking sector. Merger of the Public Sector Banks (PSBs) has been put forward as the main agenda in the sector by the Finance Ministry, the statement said.
Detailing the negative impacts of bank merger on the citizens of India, the Union said that the priority received for regional development would be the first casualty, if the merger move is adopted. It will lead to outsourcing, increase in service charges, dilution of social banking and reduction of credit to agriculture and other priority sector lending. All these will ultimately lead to class banking from mass banking, the statement said.
The growth of the Indian financial sector after the nationalisation in 1969 has been amazing.
The increase in the number of bank branches, especially in the rural and semi-urban areas, has contributed immensely to the financial development and poverty alleviation programmes, they pointed out.