HomeUncategorizedWhy government wants to bank privatization in India

Why government wants to bank privatization in India

Bank employees in India are currently on strike against privatization. Bank employees say that this will affect employment. On the other hand, the economy of the country will also suffer from this.

Bank employees say that the government forcibly wants to sell the banks to the capitalists by showing them in loss. But what is the real story in the midst of all this? It is interesting to see.

At present, bank employees in India are on strike in association with the United Forum for Banks. Bank employees say that the central government wants to hand over the banks to private hands through the Bank Privatization Act. At the same time, the government says that we want to privatize only those banks, which are running in losses.

Government wants to raise money through privatization

During the budget session, Finance Minister of India Nirmala Sitharaman had said that, through privatization, we want to raise Rs 175000 crores. Under this, LIC’s IPO is also being brought. But now it’s time to sell the banks.

In such a situation, the bank union is on strike. If the government has to achieve its target of Rs 175000 crores, then privatization of banks will have to be done. Without this it would be difficult to achieve this goal.

During the budget session itself, the Finance Minister of India Nirmala Sitharaman had also talked about privatization of banks. However, he did not specify which banks would be privatized. But it is being said that the name of Bank of Maharashtra and apart from this Indian Overseas Bank may appear.

Recently, in a press conference of the Finance Ministry, it was also said that, it is not yet fully decided that only two banks will be privatized. Or apart from this, other banks will also be privatized.

Government wants to amend the law to sell banks

Indian banks in which nationalization was done. That was done through a law. This law was brought in 1970. The law states that the government will have to hold at least 51% stake in public sector banks. In such a situation, if the government wants to privatize banks, then first this law will have to be amended. This law was also listed by the government in this Parliament session. However, the government seems to be on the back foot after the bank union strike, and there is little hope of the law being passed in this session.

According to the new law, the government wants to reduce this share to 26%. So that banks can be privatized.

The same bank government bank employees say that the government should withdraw this law. The bank union says that if the government gives us the assurance that, we are not bringing this law at the moment, then we can end our strike.

Bank unions, will increase the problem of unemployment in the country

Regarding the privatization of public sector banks, bank unions say that this will increase the problem of unemployment in the country. Bank unions argue that in the same way, the government has reduced the number of banks by the merger of banks.

For information, let us tell you that earlier there were 27 government banks in India. Whose merger has now reduced their number to only 12. At the same time, bank employees say that this is creating hurdles in reaching the last person in the country. At the same time, there has been a shortage in the branches of the bank. Due to which the problem has become even more serious.

In 2016, a total of 857000 government employees were working in banks. At the same time, in 2020 their number decreased to 770000. Bank union says that if banks are privatized in this manner, there will be a continuous reduction in government jobs.

Apart from this, from the year 2016 to the year 2021, the branches of 3300 government banks have also been closed. This branch was mostly present in the rural areas of India.

Government may step back from bank privatization

According to media reports, the Government of India may go back on the issue of privatization of banks. There are many reasons for this being told in the media. It is being said that recently the Government of India had to withdraw agricultural laws as well. In such a situation, the government does not want that now the laws related to banks should also be withdrawn.

Apart from this, the issue of bank privatisation is also trending continuously on social media platforms like Twitter. And people are opposing the privatization of banks. In such a situation, the government no longer wants to spoil the public sentiment. The opposition is already accusing the government of being friendly to the capitalist people. In such a situation, the government is not seen in any mood to take any risk now.

On the other hand, India’s largest state Uttar Pradesh is going to go to polls in the month of February. In such a situation, the government does not want to give any chance to the opposition before the elections. In view of this, the government can now go back on these laws.

It is also being said in the media report that these laws can be brought again in the next Parliament session. Till the elections in Uttar Pradesh are also over.

Vikas Yadav
Vikas Yadavhttps://thesocialchat.in
Hii my name is Vikas Yadav and I am a content writer and content editor in the social chat. I have 5 year experience in content writing and editing. You can follow us for more trending stories from around the world.


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