The Indian banking sector`s largest union, the All India Bank Employees` Association (AIBEA), on Tuesday opposed the recommendations made by the Reserve Bank of India`s (RBI) Internal Working Group as they are “retrograde” and would endanger people`s money.
The RBI`s internal working group recently recommended that large corporate/industrial houses may be allowed as promoters of banks, promoters` stake in the bank`s equity share capital can be increased from 15 to 26 per cent, and large non-banking finance companies owned by the corporate houses can be converted as full-fledged banks, among others.
“All these suggestions and recommendations are most retrograde and unwarranted in Indian conditions. Our Banks represent Rs 135 lakh crore of people`s money,” AIBEA General Secretary C.H. Venkatachalam said in a statement.
According to him, RBI is supposed to be the repository of the people`s faith in the banking system but unfortunately, it is itself is suggesting measures that will endanger the safety of people`s money in the banks.
“We strongly denounce the provocative recommendations of the RBI Working Group and urge upon the Government to reject these proposals,” Venkatachalam said.
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The story has been taken from a news agency
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