The Election Commission has given clearance to the Reserve Bank of India for grant of new licences to start banks. The RBI had requested for clearance, since the the Model Conduct has started after the General elections have been declared.
The Corporates and big business houses have been continuously pressurising the government to grant them licences to open new banks. 25 applications are pending with the RBI. The Department of Posts has also applied.
It is to be remembered that the private banks were nationalised in the 1960s after it was exposed that customers were being defrauded and the hard-earned money of the depositors were being misappropriated. Now the government wants to grant licences to the corporates/big business once again, which may be misused to benefit their own companies. The Bank Employees Unions have strongly objected to the present proposal.
At the same time, it is understood that the RBI is reluctant to grant Bank Licence to the Department of Posts. In fact, the DoP is already have banking business, including Saving Accounts, Fixed Deposits, Pension Accounts etc. and have more branches than any other banks in the country.Grant of bank licence to the DoP is only regularising the same.
We demand the government to withdraw from their proposals to grant bank licences to the private companies.