VOICING THEIR DEMANDS: Bank employees affiliated to the Gulbarga District Bank Employees' Association staging a dharna in front of the main office of the State Bank of Hyderabad in Gulbarga city on Tuesday.

GULBARGA: The staff of different banks in the city on Tuesday staged a dharna under the banner of the Gulbarga District Bank Employees' Association, affiliated to the All-India Bank Employees' Association (AIBEA), demanding withdrawal of the Reserve Bank of India (RBI) circular on outsourcing banking services.

The dharna is part of the agitation plans drawn out by AIBEA which includes a day's strike on July 28 demanding the withdrawal of the decision of the RBI to outsource banking services.

Terming the move of the RBI to outsource the normal banking services to private agencies on commission and contract basis, as part of a larger design of the Union Government to privatise the banking sector, the Gulbarga District Bank Employees' Association alleged that the outsourcing was aimed at basic banking services including the opening of bank accounts, withdrawal of cash, deposits of cash, issuance of drafts and sanction and disbursement of loans.

This move would endanger the security of customers' transaction and result in exploitation of cheap labour, the protestors said. The association in a press release said RBI had decided to outsource clearing operations to a private company as an alternative to the existing practice of RBI, SBI and other public sector banks taking up clearing of cheques.

The privatisation of clearing of cheques would threaten customers' confidentiality besides cutting jobs in banks.

Foreign direct investment

The association opposed the Government's move to allow 74 per cent foreign direct investment in capital of the Indian private banks, which would allow foreign capital to swallow private banks.

The Bill introduced in the last session of the parliament seeks to delete Section 12 (2) of the Banking Regulation Act by which the existing ceiling of 10 per cent on voting rights. The press release said the Government should fill up vacancies in all the banks taking into account the increase in business volume.

Members of the All India Grameena Bank Employees' Association, All India Grameena Bank Officers' Association, All India Bank Officers' Association have extended their support to the agitation and will participate in the all-India strike.

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