The United Forum of Bank Unions (UFBU) plans to go on a flash strike if the Government introduces the Banking Laws (Amendment) Bill in Parliament.
UFBU is opposed to the Bill, which will also pave the way for issue of new bank licences to corporates by the RBI, as it would help in easier merger of banks, unrestricted voting rights to enable takeover of private banks by corporates and foreign investors.
Voting rights
The Bill also proposes a 10-fold increase in the voting rights of private shareholders in nationalised banks.
“Instead of strengthening public sector banks by pumping in capital, the Government is letting in corporates in the banking space in the name of financial inclusion. This will be detrimental to the health of the financial sector,” said Mr Vishwas Utagi, Secretary, All India Bank Employees Association.
About 10 lakh bank employees and officers working in all public sector banks, old generation private sector banks, and co-operative banks will go on an all-India flash strike under the aegis of UFBU if the Government introduces the Bill in the current session of Parliament, he added.
The current Parliament session is on up to September 8, 2011. UFBU is the apex body of nine trade unions operating in the banking industry.
The Unions are also opposed to the Planning Commission's Draft Approach Paper for the Twelfth Plan. The Paper has suggested reduction of Government's capital in public sector banks to less than 51 per cent.