Purpose of Bank Natiolisation

Canara Bank Employees' Union

CIRCULAR NO. 27/24/2013/30 19TH July, 2013
TO ALL UNITS & MEMBERS
Dear Comrades,

Hail 44th Anniversary of Bank Nationalisation

Carry on the campaign and struggle

To defend and strengthen public sector banking
To resist and repulse privatisation moves
To oppose and obstruct banking reforms

While the nationalisation of major private Banks on 19th July, 1969 will remain a historic watershed decision in the post-independent politico-economic events in our country, the progress made by our nationalised banks in the last four and half decades is equally unmatched and unparalled. Many segments of the economy which remained backward and neglected could became priority sectors. Bank credit was able to flow to important sectors like agriculture, employment generation, poverty alleviation, rural development, women empowerment, health and education, infrastructure, etc. Banks could access and mobilise the hard-earned savings of the people and utilise the same for credit deployment to needy sector. Branch expansion after nationalisation is a record in the entire world. Doors of the banks which were hitherto closed for the common people were opened up for them. Class banking could become mass banking to a great extent.

But in the last two decades, the policy of the Government has changed. The attempt is to reverse the clock back. The idea to hand over the banks back to the private hands. And all these retrograde measures are sought to be carried out in the name and plea of banking sector reforms. All the gains of nationalised banking are sought to be short-circuited. Public sector banking is denigrated and private sector banks are being glorified. Deficiencies of the public sector banks are being highlighted but the gross failures of the private sector banks are being camouflaged. Social banking is decried and profit making is being made the sole objective. Government’s ownership in banks is being diluted and private sector’s influence is being increased. Public sector banks are sought to be consolidated, merged and shrunk whereas private sector banks are allowed to be expanded. Shamelessly, the corporates and business houses are sought to be given licenses to start their own Banks. Rural banking is attempted to be outsourced and permanent jobs in the banks are being contracted out. Financial inclusion is the requirement of the day. But by diluting the role of social banking, financial exclusion is being aggravated. In short, it is reversal of the objectives and goals of bank nationalisation.

That is why when we celebrate the 44th Anniversary of Bank Nationalisation, we see challenges all around. Looking to the country’s needs, AIBEA envisioned, campaign and fought for nationalisation of Banks. Everyone acknowledges the pioneering role of AIBEA in its crusading fight for nationalisation of Banks. The whole country is a witness to the gains of bank nationalisation. What is more significant is that in the recent years, in countries which trumpeted liberalisation as the solution for development and progress, faced the worst crisis and these policies drowned their economies in deep troubles. But, such financial tsunami did not affect our Indian economy because our public sector Banks stood like rocks and shield our economy and our economy remained insulated. Here again, AIBEA’s consistent struggle against liberalisation of banking regulations saved our economy and our Banks and thus our people’s savings. We deserve a pat on our back because our struggles were patriotic and in people’s interest.

But there are no signs of the Government relenting. They are seriously pursuing their agenda. There is not even a pretention and everything is so naked. Today, on this historic bank nationalisation day, neither the Government, nor the IBA nor any of the nationalised Bank have released any advertisement in newspapers highlighting the enormous contributions of our nationalised banks to our economy. This shows their mindset. Some of the former bank Executives, who during their tenure used to talk so much about employees’ commitment to the Banks, are today on the paid rolls of the corporates who are queuing up to get a bank license. These challenges will further intensify in the days to come.

Hence, the occasion warrants not only celebration and hailing but also a strong resolve to resist and repulse the retrograde banking reforms. The need of the hour is to reiterate our pledge to strengthen public sector banks. 

Inside the Banks, we should improve customer services and improve our efficiency to work for the progress of our Banks. Out in the streets, we must fight back with all our strength to defeat the sinister designs of banking reforms.

The task beckons us. The struggle awaits us.

With greetings,

Yours Comradely,

C.H. VENKATACHALAM
GENERAL SECRETARY

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