NOBW demands review of the licencing policy

Ashwani Rana

IN the wake of a recent sting operation conductd by Cobrapost, which exposed the working of three new generation private banks namely ICICI, HDFC and Axis Bank, the National Organisation of Bank Workers (NOBW) demanded the Reserve Bank of India (RBI) to investigate into the matter thoroughly and if finds lapse on the part of the banks cancel their licences with immediate effect.

Talking to mediapersons in New Delhi on April 18, the NOBW said since these banks are not following the KYC norms strictly, so many frauds are taking place in the banking industry. “This has been highlighted when the government is going to give more licences to the Corporate and Industrial houses. We demand the Government should rethink over the decision of new licencing policy. This is not simply a matter of black money, KYV norms and money laundering but it is a serious threat to nation’s economy,” said NOBW general secrtary Shri Ashwani Rana.
The NOBW also came heavily on outsourcing in the banking sector. It said the Government, Bankers and the RBI are trying to encourage outsourcing permanent and perennial jobs in the banking industry. Each Bank has unilaterally formulated its own outsourcing policy to contract out the normal banking jobs.

The provision of 9th Bipartite Settlement between IBA and Unions restricts the scope of outsourcing to the area of IT and its related activities in respect of specialised areas only where in-house capability is not available. Nevertheless in violation of this settlement. Routine Banking transactions are being outsourced, to reduce staff cost; at the cost of security of depositors and image of the Banks. There is no need for middlemen/intermediaries in the Banking Industry. The Business facilitators and Business Correspondents are not accountable and exploiting the customers. The banking runs on faith and trust of the general public. It requires professionalism and loyalty,” said a statement demanding reversal of the policy. The organisation said it would raise all the issues related to bank employees at the dharna to be organised at Jantar Mantar in New Delhi on April 22.   
(FOC)