PHOTO: PTI

SOLIDARITY: Bank employees hold a demonstration to protest against outsourcing of their services in front of the Reserve Bank in Kolkata on Friday.

NEW DELHI : Banking operations across the country were affected on Friday as more than five lakh employees and officers in public sector, private and foreign banks struck work to protest against the proposed outsourcing of services.

Reports from Kolkata, Mumbai, Delhi, Punjab, Rajasthan, Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Goa, Jharkhand, Bihar, Assam, Gujarat, Bangalore, Kerala, and other places said the response to the strike call was total. The All India Bank Employees Association (AIBEA), the All India Bank Officers Association and the Bank Employees Federation of India had given the call.

However, the State Bank of India and Indian Overseas Bank employees did not participate as they are not affiliated to any of the three unions.

RBI circular

"We are seeking withdrawal of the Reserve Bank of India (RBI) circular on outsourcing of banking services, clearing operation and amendments to Section 12 (2) of the Banking Regulation Act on removal of voting rights in banks," AIBEA general secretary C.H. Venkatachalam said.

Among the other demands of the unions were filling up of the nearly one lakh vacancies through fresh recruitment, and expeditious extension of one more option for pension.

Mr. Venkatachalam said the RBI circular permitted banks to outsource all the normal banking services. This will include opening bank accounts, accepting deposits, withdrawal and deposit of cash, issuance of drafts, and sanction, disbursement and recovery of loans. This meant all the basic services would be outsourced.

Not only would this affect the jobs of the employees but also endanger the secrecy and security of transactions.

Exploitation of labour

Further, this would result in exploitation of cheap labour for undertaking the existing permanent and perennial jobs. Rural banking would be virtually handed over to the private agencies, he said.

The RBI had also decided to outsource clearing operations to a private company.

A Bill has been introduced in the Parliament seeking to delete Section 12(2) of the Banking Regulation Act by which the existing ceiling of 10 per cent on the voting rights will be removed. Hence the Government wants to allow 74 per cent FDI with 74 per cent voting rights. This would result in our banks being swallowed and monopolised by foreign capital, Mr. Venkatachalam alleged.Employees from the Cooperative Banks and Regional Rural Banks extended their support to the strike and RBI employees also participated in the demonstrations, according to AIBEA.

Printer friendly page  
Send this article to Friends by E-Mail