Giving Banking Licence to Corporate Houses is Retrograde: CPI
CPI General Secretary D RAJA has issued the following statement today (on November 24, 2020):
Continuing the pro-corporate neo-liberal economic trajectory of Modi government, RBI’s Working Group has given its recommendations suggesting that large corporate and business houses may be allowed as promoters of Banks, large Non-Banking Finance Companies owned by corporate houses can be converted as regular banks, and various other measures to liberalise the banking sector in favour of private corporate houses.
It should be recalled here that at the time of independence of our country, all the Banks in India were owned by business houses but none of them came forward to help the government in its planned economic development projects. On the other hand, these private banks were mobilising savings of the people and cornered the same for their own business vested interests. Because of this, many banks ran into problems and suffered from issues like conflict of interest.
CPI was in the forefront in demanding nationalisation of banks and trade unions like AITUC and AIBEA had launched intense struggles on this demand. Our members of Parliament at that time raised this demand vehemently and enlisted the support of many political parties. Finally, in 1969, Mrs. Indira Gandhi nationalised the major private banks. Since then, these nationalised banks have played a pivotal role in our country’s economic development and in safeguarding people’s money. Nationalised banks have today become the main engine of economic development.
Further, every now and then, we hear the crisis in private banks. A few days ago, we have seen the fate of Lakshmi Vilas Bank. It is unfortunate that instead of learning lessons, the RBI is proposing to hand over banking licence to corporate and business houses.
Nationalised banks are the custodians of hard-earned savings of the common people of this country. RBI’s proposal will jeopardize their interests and run counter to India’s economic development. Giving licence to corporate and business houses is the most retrograde step and should not be allowed.