Press Statement issued on 09th November 2013 by Shri Pradip Biswas, GeneralSecretary, Bank Employees Federation of India, at Kolkata,on Entry of foreign Banks in India . “We are alarmed at the policy guidelines released by Reserve Bank of India (RBI) on 06th instance on “the framework for setting up of Wholly Owned Subsidiaries (WOS) by foreign Banks in India”. This is in discharge of the solemn commitment of Mr. Raghuram Rajan, the Governor of RBI to US investors on 12th October this year to come out, within a few weeks, with major reforms of the Banking Sector allowing foreign investors even to take over Indian Banks.Stripped off technical and high sounding jargons, the “guidelines” provide for almost unrestricted entry of foreign banks and opening of branches here through setting up of their Wholly Owned Subsidiaries (WOS); such WOS of foreign banks have also been given the liberty to acquire and take-over any Indian-private bank at will. We are seriously perturbed and agitated, rather alarmed, but not a bit surprised. Indeed the present “guidelines” isjust the follow-up of the “roadmap for presence of foreign banks in India”, released by RBI as early as in 2005, which, however, could not be followed up at that time because of the vociferous opposition of the leftist parties on whose support the then UPA-I was heavily dependent for its very survival. We are also aware of the infamous Report of the Raghuram Rajan Committee (August 2007 –September 2008) on Financial Sector Reforms proposing creation of a comfortable atmosphere for entry of foreign investors. Indeed, since the onset of the neo- iberal economic reforms regime in early 1990s, successive Governments at the Centre have been dancing to the tune offoreign investors to the detriment of our economic sovereignty; in the ex-World Bank Raj of Manmohon-PC- Montek triumvirate during the present UPA-II regime , that dance has only reached its crescendo. The present policy is, therefore, no surprise from the present Government who are totally indifferent to chalk out a “roadmap for ameliorating the mise ries of the common people” or to create a “comfortable atmosphere for sustenance of aam aadmi” who voted them to power. The entities being invited into our shores were responsible for financial disaster in the wake of financial meltdown in the United States and other advanced economies of the World in September 2008, around time when Mr. Raghuram Rajan submitted his ill-famous Report .. India could withstand the financial tsunami, that shook the world elsewhere, with exemplary resilience, only because of the dominance of a well -regulated Nationalised Banking Sector.We cannot also forget the direct involvement of some Foreign Banks in the most infamous BSE Share Market Scam of1992 (commonly known as Harshad Mehta Scam). Even as per a recent report of RBI itself with regard to complaints of banks’ clients received by the Banking Ombudsman, as on 31.03.2012,complaints against Public Sector Banks is 0.6per Branch, whereasin case of Private Banks, it is 2.35 and in case of Foreign Banks , it is22.34. From this it can very well be concluded that the performance of PSBs is far superior to that of Private Banks or Foreign Banks. While reiterating its pledge to continue to fight against all evil machinations of the power combinations at the centre to barter away the economic and financial interests of the Country, BEFI calls upon its members everywhere to get ready for facing the ominous challenge thrown to thevery existence of Public Sector Banking and to remain prepared for any sacrifice to save the same as the most patriotic duty.” ______________________________________________________________
Posted on: Sun, 10 Nov 2013 15:58:34 +0000