Chennai, May 14 UNI | 3 months ago

The Bank Employees Federation of India (BEFI) today opposed the RBI panel's recommendation to privatise the Public Sector Banks (PSBs).

In a statement here, BEFI General Secretary Press C P Krishnan said at a time when the whole country was awaiting the results of the Lok Sabha election, a panel appointed by RBI headed by former Chairman of AXIS Bank P J Nayak has come out with its report to privatise PSBs.

The eight-member committee constituted by the RBI in its report submitted on May 12 said the financial position of the PSBs which have market share of nearly 70 per cent was very fragile.

"There are several external constraints imposed upon the PSBs which are inapplicable to their private sector competitors. These constraints encompass dual regulation (by the Finance Ministry and by the RBI, which goes substantially beyond the discharge of a principal shareholder function)", Mr Krishnan said.

The Report proposes that the Government distances itself from several bank governance functions which it presently discharges.

For this purpose it recommends that the Bank Nationalisation Acts of 1970 and 1980 together with the SBI Act and the SBI (Subsidiary Banks) Act, be repealed.

(Posted on 15-05-2014)