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Our Bureau

Thiruvananthapuram , May 15

Trade unions in the financial sector are gearing up for a nation-wide agitation against the move to source banking and insurance services. The unions are observing May 16 as "anti-outsourcing day" with various programmes such as protest rallies and meetings at various centres in the country.

Demands

Office-bearers of the Kerala State Committee of All-India Co-ordination Committee of Unions in the Financial Sector said here on Monday that the demands included dropping of the outsourcing move; filling up of the thousands of vacant posts in banking and insurance sectors; and permanent employment to casual employees.

They pointed out that the Reserve Bank, in its notification on January 25 this year, had instructed the banks to outsource some of the services to other agencies and private financial institutions on the ground of increasing rural lending operations. The services included identifying people needing loans, accepting applications for loans and processing, recovery of loans and mobilisation of deposits.

Intermediaries

However, these would result in the creation of private sector intermediaries in the loan sector who would work with profit-making motives, the office-bearers warned.

The RBI itself is making moves to outsource some of its main operations such as clearing-houses; public debt management of the Union Government; currency management; and foreign exchange transactions. These would lead to serious adverse affects on the security of money transactions, development of backward States and the financial sovereignty of the nation.

There are also suggestions for introducing similar outsourcing of services in the insurance sector. The appointment of third party administrators in the mediclaim area was part of the outsourcing strategy, they said.

More Stories on : Trade & Labour Unions | Outsourcing

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