The Public Sector Banks saved India from the 2007-08 recession which rocked US and European countries. They gave confidence and motivation to the customers that their money is safe in their hand. PSU Banks ensured the growth of the Nation. But the corporates, big businesses and MNCs are not happy with the growth of the PSU Banks. Now they want to destroy so that private banks can grow.
In order to weaken the Public Sector Banks, licences were given to Payment Banks. Department of Posts were denied first, but the discrimination by not giving licence to Post Office, which are already providing Savings Bank, Fixed Deposits services etc. was so exposed, the govt. gave it also. But all others were private companies, who got the licence.
Now the reserve bank has given small finance licence to 10 private companies to do banking. They are — Au Financiers (India) from Jaipur, Capital Local Area Bank, Disha Microfin Pvt Ltd from Ahmedabad, Equitas Holdings, ESAF Microfinance and Investments from Chennai, Janalakshmi Financial Services, Ujjivan Financial Services based in Bengaluru, RGVN (North East) Microfinance based in Guwahati, Suryoday Micro Finance from Navi Mumbai and Utkarsh Micro Finance based out of Varanasi.
This move is a licence for banking for looting the public. Neither the government will have any control, nor the Reserve Bank. It will be a jungle Raj. The nationalisation of the banks done in the 1960s which helped the country and the people are being destroyed.
It is just like the attack on the govt.telecom. First private entry was allowed, then weakening of BSNL/MTNL. Now so many bank licenses are given, Next step will be attack on the Public Sector Banks. I am sure the Bank Employees’ Organisations, which are united and strong will fight this brutal attack on their existence and defeat the government’s foul game.