PROTEST OVER OUTSOURCING OF BANK TRANSACTIONS

All Kerala Bank Employees’ Federation

To

The General Manager, 27TH December, 2013

Canara Bank & Convenor, SLBC, KERALA Circle Office Thiruvananthauram.

Dear Sir,

OUTSOURCING OF BANK TRANSACTIONS THROUGH AKSHAYA CENTRES:

This is to convey our grave concern and strong protest over the move of Canara Bank to outsource Banking Operations through Akshaya Centres, as reported by a section of the press on 24th Dec 2013.

The report also states that this move is to be extended to various other banks in the State of Kerala. It is also implied in the report that the same has been initiated by Canara Bank as convener of the State Level Bankers’ Committee (SLBC).

It has been noticed that although apparently the tie-up is with the Government sponsored IT Mission linked Akshaya Centres, the contract is operated through a private entity namely Integra Micro Systems Ltd., a Bengaluru based company. This increases the cause for concern.

As a responsible organization in the Banking Industry, the AIBEA has time and again reiterated its stand against the tendency of outsourcing Banking Services.

First of all, outsourcing alienates customers from the Bank Branches, leading to financial exclusion.

Secondly, it affects the secrecy and security of the transactions, exposing customers to grave risk.

Thirdly, banking has to be conducted accompanied by the highest standards of vigilance, which will definitely take a beating in the case of the outsourcing model.

Fourth, it will take the country back to the pre-nationalization days of “class banking”, where only the affluent shall have access to wholesome branch-banking services.

Fifth, it reduces the job opportunities in the banks.

The present move is reportedly for promotion of financial inclusion as also for facilitation of Direct Benefit Transfer (DBT). However, there is a discernable design to keep away the poorer sections of the society from the branch premises. Hence, this is more a move of marginalization than inclusion.

It may be recalled that outsourcing moves in the banking industry have not yielded any desirable results. Rather, it has led to several non- functional Points of Service and led to frauds, putting the customers to peril and Banks to reputational risks.

In the above backdrop, we urge upon you to stop any move of going ahead with the proposed tie-up with Akshaya Centres.

In this connection, the All Kerala Bank Employees’ Federation is guided by our well known stand against outsourcing, including BC / BF models, and accordingly, may resort to appropriate organizational action, as decided by our Central Committee and as advised by our national organization, AIBEA.

Yours faithfully,

C D JOSSON, GENERAL SECRETARY (9447085424 )

Copy to:

1. The Hon”ble Chief Minister, Government of Kerala, Secretariat, Thiruvananthapuram.

2. The General Secretary, AIBEA, Central Office, Chennai.