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Bank strikes result in longer queues, erosion of trust Peoplespeak

Banking on notes: Bank strikes cause lots of hardship in India because currency, and not e-transactions, still reigns here.

Banks were nationalised to facilitate easy access to the common man. It was intended to help and guide small scale merchants and business groups. Sadly, the expectations were not fully met.

Any change in banking method affects the customer. A bank officer demanded service charge for attesting my signature -- a pensioner who had regular transactions for more than 12 years! At the same time they do not find it as an offence to close their doors to the public for three days last month. What is the compensation of this denial of service? Facts reveal that banks favour only the rich and mighty. Only a drastic change in the banking sector, with a dose of humane approach, can save the scene.

A K Jayarajan

Kozhikode

The move for reforms in the banking sector is purportedly to create large banks with assets that can match the global giants -- in short for global competitiveness. The objections to this move are mainly from the Left parties who fear that the focus of these large banks will shift to the global arena, rather than the domestic sector. The social objectives of bank nationalisation will thus be given a go by.

Since profitability will be the main concern, the less lucrative businesses will be shunned. In order to ensure that the credit needs of the underprivileged sections of society are met, RBI has stipulated benchmarks for lending to these priority sectors. At present, many banks, mainly the new generation ones, do not meet these benchmarks. They do not wish to have anything to do with this less remunerative sector. Instead, they deposit the shortfall in bonds of SIDBI and NABARD, who use this money not for direct lending, but to refinance other banks. The proposed large banks with their focus on profitability will be no different.

While consolidation of the banks in the country may be necessary for the country’s global integration, the government should ensure that the agriculture and small industries, which provide many jobs and contribute to the national income, are not ignored. George Thomas

Thiruvananthapuram

The economic costs of disruptions in the functioning of the financial sector are considerably high, especially since cash reigns as the preferred mode of transaction in the country. But, the advance of ATMs, debit and credit cards, online banking etc, has blunted the disruptive edge of bank strikes to some extent. However, most customers, especially those of State-owned banks, still prefer the brick-and-mortar banking, visiting the branches for transactions. Since inter-bank connectivity is not available, cheques have to be physically exchanged in the clearing houses where thousands of crores are settled daily.

The most disruptive impact of work stoppages in banks is caused by non-functioning of clearing houses. This has a cascading effect as it takes weeks after a strike to clear the backlog.

The brunt of the suffering here is borne by trade and industry.

Till the time cheques gain more acceptability and all banks are electronically connected, the public, it seems, will have to put up with inconveniences imposed by bank strikes.

V.N. Mukundarajan

Thiruvananthapuram

Of late, there have been frequent disruptions of banking services due to the employees’ strikes. While one should respect the right of every class of workers to protest against injustice, one wonders whether there are no other less-destructive means to protest.

At times it appears that frequent stoppage of work by bank employees amounts to holding the people, the business community and the nation at large to ransom. There should be an efficient machinery for redressing grievances in each banking institution.

Employees should resort to strike only when all avenues have been exhausted. That way their genuine grievances will have the sympathy of the customers, lending their agitation more force. The adverse effects on the economy and its development due to it will be minimised.

B.K.S. Nair

Thiruvananthapuram

The banking industry has undergone a lot of changes from the traditional style of accepting deposits and giving loans. Now, the industry goes to the door steps for ‘anywhere and everywhere banking,’ to make the masses aware of the importance of banks. The banks provide assistance to farmers, businessmen, professionals, students and people from other walks of life. Predictably, any crisis in the sector will impact the common man with a linkage effect. The business community cannot exist without a well-knit banking operation, national and global. Negotiable instruments like trade bills and cheques are widely used by businesspeople. If safety of transactions is affected and the public loses faith in the functioning and credibility of banks, the economy can plummet to bad days.

G. Muraleedharan

Vattiyoorkavu

The number of bank customers is mounting steadily. However, the service rendered is tardy. So disruption of banking service will certainly upset the ordinary people and the business community, who will be hampered by delay in transactions.

After computerisation was introduced, it was hoped that customers will have an easier time. It has not proved to be so. Customers waiting for hours together to get their work done is a common sight even now.

One can imagine what the plight will be following a prolonged disruption in banking service!

N. Ramachandran

Vakkom

Decentralisation of banking powers is a must . It will address the needs of the public quickly and provide transparency in dealings with the public. Disturbing the status quo in the banking sector will invite more harm than any good. The economically weaker sections, who are largely benefited by banks, will face undue delay in transactions.

Ravi Kumar N.

Thiruvananthapuram

Banks are functioning for and on behalf of the nation’s people. It is the duty of the banks, whether nationalised, scheduled or cooperative, to serve the public. The loans they provide contribute to society’s development. Hence it is imperative that merger proposals or reform moves do not lead to disruption of banking services. It must also be noted that employees will not launch agitation, if their apprehensions are allayed. Merger must not affect the prospects of employees as well as account holders.

P. Sankaraynarayanan

Thripunithura

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