SHILLONG, July 19: The All India Bank Officers Confederation (AIBOC), Meghalaya unit, on Friday strongly opposed any move by the central government to privatise Public Sector Banks (PSBs).
Addressing a press conference on the occasion of the 55th Bank Nationalisation Day, AIBOC Meghalaya state unit DGS, Devadeep Dasgupta, cast aspersions on the Centre’s efforts to privatise PSBs. He accused the central government of using backdoor methods, such as merging several PSBs into larger entities, under the guise of increasing efficiency and financial stability.
“On July 19, 1969, the then Prime Minister Indira Gandhi took a landmark decision by nationalising 14 major commercial banks, bringing in an era of socio-economic reforms aimed at poverty eradication, financial inclusion and increased access to financing for the underprivileged sections of the society. Now, the present government is doing the reverse,” Dasgupta stated.
According to him, there has been a trend in the past 10 to 15 years where the government appears to be promoting private banks.
“If PSBs are sold off, it will negatively impact small farmers, artisans, and investors, as nationalised banks provide them loans at lower interest rates,” he warned.
Dasgupta also pointed out that since 1935, a total of 1,600 private banks have gone out of business.
“It was the public sector banks that bailed them out when they were in trouble,” he said, emphasising that the strength of the Indian economy and financial sector is due to PSBs.
He noted that during the 2008 global meltdown and the COVID-19 pandemic, countries dependent on public sector banks, like India, withstood the crises better than those reliant on private banks.
Meanwhile, AIBOC Meghalaya unit secretary, Davis Lyngdoh, said many people are unaware that small loans from nationalised banks do not require collateral.
“There is credit guarantee trust by the government. If a small entrepreneur does not bring any collateral, the government stands as the guarantor. But this is only when a person comes to a nationalised bank,” Lyngdoh said.
