Shillong, Nov 6: The United Forum of Bank Unions (UFBU) has taken strong exception to the remarks of Union Finance Minister Nirmala Sitharaman on bank privatisation during a lecture held at the Delhi School of Economics, University of Delhi.
According to the union, the Finance Minister tried to project privatisation in a positive light while responding to a student’s apprehension that privatisation may restrict banking services to a privileged segment of customers.
The forum, representing nine trade unions of officers and workmen across all our banks, in a statement today said it rejects the narrative and added, “public sector banking has been the backbone of India’s financial inclusion, social justice lending, rural penetration, and national economic stability.”
The forum said the nationalisation of banks in 1969 reshaped the socio-economic foundation of the country and became the instrument for inclusive and equitable national development.
The forum said attempts to glorify privatization overlook ground realities and the lessons of history. It warned that privatisation would trigger financial exclusion in rural India, workforce downsizing and erosion of job security, and dilution of reservation and trade union rights.
It cited the collapses of YES Bank, Global Trust Bank, and Lakshmi Vilas Bank as examples of governance lapses in private banks, noting that public sector intervention was required each time to safeguard depositors.
UFBU also emphasised that public sector banks remain accountable to Parliament, the Comptroller and Auditor General (CAG), and citizens, whereas private banks are accountable only to shareholders.
“No country in the world has achieved universal banking through privatized banks. To say privatization will still ensure inclusion is not supported by any evidence,” the forum said.
Stating that professionalization can be achieved through capital infusion, better governance, technology, accountability, human resource development, the forum said none of these require privatisation. “Privatization only shifts control of public money into private hands,” it said.
The UFBU demanded that the government provide a categorical assurance that no public sector bank would be privatised. They urged capital infusion, technology upgrades, and transparent governance reforms to strengthen public sector banks instead.
The forum also called for public consultation and parliamentary debate before any policy that could affect depositors, employees, or citizens.
Reaffirming its position, the forum said: “Public sector banks are a national asset. We will not allow them to be sold.”
