Wednesday, Feb 24 2021 | Time 23:43 Hrs(IST)
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  • PM Modi pitches for privatisation, says money earned will be used for people's welfare
  • Suzuki Motor chairman to retire
  • J&K Cong to intensify protests against “Tax Terrorism”
  • Embargo lifted on private banks to conduct govt business
  • Centre's decision to lift embargo on pvt sector banks to have access to Govt's business is unfair : AIBEA
  • COVID: J&K reports 74 new +ve cases
  • Speaker directs officials to provide answers on time
  • Man sentenced to life imprisonment under POCSO act
  • NC denounces hike in fuel prices, says it adversely affects poor, middle class
  • Mamata dashes off letter to PM Narendra Modi
  • Trujet to operate weekly flights to Mumbai from Nanded
  • Police arrests 2 absconders in Kashmir
  • 13 cybercriminals nabbed by Deoghar Police
  • Andaman allows Tourism activities North & Middle Andaman District with due SOP
  • Naveen launches MPLS VPN for RD department
Business EconomyPosted at: Feb 24 2021 9:21PM


Centre's decision to lift embargo on pvt sector banks to have access to Govt's business is unfair : AIBEA

Hyderabad, Feb 24 (UNI) The Union Government's decision on Wednesday to lift embargo on private sector banks for the conduct of government related banking transactions was 'unfair', All India Bank Employees' Association (AIBEA) said tonight.
The AIBEA demanded the government to review the decision as it is like feeding milk to the poisonous snake, AIBEA General Secretary Ch Venkatachalam said in a release.
He said the government's decision to lift embargo on private sector banks, to have access to Government’s business as announced in the press brief by the Department of Financial Services under the Ministry of Finance and a similar tweet from Finance Minister Nirmala Sitharaman's office is unfair and needs to be withdrawn.
Mr Venkatachalam said the press brief said that private banks will thus be treated equally and will be equal partners.
This is a strange contention of the Government. If all Banks are equal, then why the private Banks are exempted from emphasis on rural branch expansion, rural lending, agriculture loans, priority sector loans, etc, the top union leader asked.
Government Banks have mobilized 42 crores of Jan Dhan Yojana bank accounts of the poor people. Private Banks have opened only 1.25 crores of such accounts of the poor people. Why they were not equal partners in this pet scheme of the Central Government.
In giving agriculture loans, let private banks compete with public sector banks. In giving education loans to the poor students, will private banks compete. In opening rural branches, let them compete with Nationalized Banks, he said.
Public Sector Banks social banking obligations have the cost. Lesser rate of interest on agriculture loans or education loans or MSME, etc. have a cost to the Banks. Government’s business to these Banks helps in cross-subsidisation of the cost.
If the Centre distribute their government business to private banks, the ability of public sector banks to lend to weaker and priority sectors on concessional rates of interest will become difficult because Government’s business helps these Banks to balance the cost.
This Government decision to give equal treatment to private Banks is unfair and to the disadvantage of public sector banks.
Private sector is the main contributor of Banks’ huge bad loans. But there are attempts to hand over the Nationalized banks to these private sector, Mr Venkatachalam said.
He said now this decision is meant to boost the private banks at the cost of public sector banks.
The AIBEA deplore this decision and demand the BJP-led NDA government to review it.
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Tags: #Centre's decision to lift embargo on pvt sector banks to have access to Govt's business is unfair : AIBEA
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