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NEW DELHI: On Thursday, a two-day nationwide bank strike commenced in protest of the federal government's intention to privatise two public sector banks.
The Union Forum of Bank Unions (UFBU), an umbrella organisation that comprises nine bank unions, has called a strike.
Most banks, including the State Bank of India (SBI), have cautioned consumers about the strike's potential impact on financial services such as check processing and cash transfers. The controversy started when the Centre stated in its Budget 2021-22 that two public sector banks (PSBs) will be privatised this year.
Two public sector banks would be privatised this fiscal year, according to Union Finance Minister Nirmala Sitharaman, as part of the federal government's Rs 1.75 lakh crore disinvestment initiative. The national government is anticipated to present the Banking Laws (Amendment) Bill, 2021, during the current Winter Session of Parliament.
"The Cabinet committee established for this purpose is responsible for reviewing a variety of issues related to disinvestment, including, among other things, the bank(s) to be selected." "The Cabinet committee involved with the privatisation of PSBs has taken no decision in this regard," Union Finance Minister Nirmala Sitharaman said in answer to a question on Monday.
Bank unions have been vocal in their opposition to the Banking Laws (Amendment) Bill, 2021. The Centre will bring the Banking Laws (Amendment) Bill, 2021, to amend the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970. According to the Act, the government must own 51 per cent of public sector banks at all times.
The central government's minimum stake would be reduced to 26 per cent under the new legislation. AIBOC, AIBEA, and the National Organization of Bank Workers are among the nine bank unions that make up UFBU (NOBW).
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