- AIBOA OPPOSES BACKDATED BACK DOOR PRIVATISATION OF BANKING BY STATE BANK OF INDIA

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PRESS STATEMENT ISSUED BY

S.NAGARAJAN, GENERAL SECRETARY,

ALL INDIA BANK OFFICERS ASSOCIATION

BACKDATED BACK DOOR PRIVATISATION OF BANKING

BY STATE BANK OF INDIA - AIBOA OPPOSES

Our attention has been drawn to a report pertaining to the State Bank of India management entering into an agreement with Reliance Money Infrastructure Ltd., on 25^th February 2014 giving retrospective effect for the said understanding with effect from 5^th October 2013 to handle the all the front office Banking assignments to a Private company viz., “Reliance Money Infrastructure Ltd.,” as a business facilitator/correspondent.

The basic function of a Banking company is to take the money as deposit and lend the same to the needy individuals as advances. Banking Institutions have already forgotten this basic important function and slowly succumbing to sell third party products like mutual funds, Insurance and Units etc., resulting in the Institutions now are “also do Banking”.

It should not escape the attention of the Public at large, that Reliance capital is one of the “aspirant” for the “Banking License” another extended arm of Anil Ambani Group Company, which could not get the same in this recent release of sanction given by Reserve Bank of India.

AIBOA strongly opposes the action of SBI, of non-recruiting the required number of staff members to handle the business of the Bank, resorting to this exercise amounts to “back door privatisation of the Bank with back dated effect” to a company, which was not considered for new Banking license by the controller of Banking system.

This move of SBI Management is nothing but “outsourcing of essential services” coupled with affecting the privacy of the individual account holder, as they are already handling very many similar services of Banking activities.

AIBOA, urges upon the authorities in Central Bank of the Country and also the Government of India to step in the process of reversal as the past experience of the private entities are not worth mentioning.

/S.NAGARAJAN/

GENERAL SECRETARY 05.05.0214