The United Forum of Bank Unions (UFBU), an umbrella body representing nine trade unions of officers and workmen across the banking sector, has objected to what it termed as Finance Minister Nirmala Sitharaman's 'implied endorsement' of bank privatisation during her address at the Delhi School of Economics earlier this week.
In a statement issued on November 6, the forum said it 'deeply regrets and strongly protests' the remarks made by the FM, who, while responding to a student's query, appeared to dismiss fears that privatisation would restrict banking access to privileged customers.
UFBU asserted that such a stance undermines the historical and continuing contribution of public sector banks (PSBs) to financial inclusion, social justice, rural development and economic stability.
The forum said the nationalisation of banks in 1969 had transformed India's socio-economic landscape by extending credit access to farmers, workers, small businesses, women, and weaker sections, segments largely ignored by private lenders.
'PSBs became the backbone of inclusive growth, expanding from a few thousand urban branches to lakhs of villages,' the statement said, adding that private banks have shown little interest in unprofitable regions.
It further noted that welfare-linked banking schemes such as priority sector lending, agriculture credit, self-help group financing, student and MSME loans, and social security payments became viable only because banks were under public control.
Criticising attempts to 'glorify privatisation', UFBU cautioned that the move would lead to financial exclusion in rural India, downsizing of workforce, erosion of job security, and the dilution of reservation and trade union rights.
It cited the collapses of YES Bank, Global Trust Bank, and Lakshmi Vilas Bank as examples of governance failures in private institutions, arguing that public sector banks and government intervention had to step in each time to protect depositors. -- Harsh Kumar, Business Standard
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