Please share this on ur wall with tag 19JulySavePSUBanks On the midnight of July 19, 1969 the

Please share this on ur wall with tag 19JulySavePSUBanks On the midnight of July 19, 1969 the Government of India promulgated the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, which nationalised the 14 largest commercial banks. The main objective of this historic decision was that “Banking system has to sub serve national priorities and objectives such as rapid growth in agriculture, small industries, exports, raising employment levels, encouragement of new entrepreneurs, development of backward areas etc.” It was also necessitated due to the incompetence of private sector dominated Banks resulting in several failures which wiped out the hard earned deposits of the people. PSU Banks since then engineered a remarkable transformation in fostering economic growth and progress of the nation and attaining economic self-reliance. It transformed the face of banking in India by bringing about an enormous expansion of baking services and ensuring financial inclusion through priority sector lending norms, which enhanced credit flow to agriculture and small industries. Presently its the PSU Banks who are providing Education Loans to students, Kisan Credit Cards to the needy farmers, MSME Loans to help people earn a livelihood and also increase employment.. PSU banks have taken Banking to the remotest of Villages.. Currently, the public sector banks account for nearly 70% of all bank deposits and 68% of all outstanding credit in India. It was mainly due to the dominance of the public sector in banking and other crucial financial segments, like insurance, that the Indian financial sector did not suffer from the severe consequences of the global financial crisis of 2008. The public sector banks in India are currently faced with a serious challenge on account of NPAs (Non-Performing Assets) piling up over the past few years. These NPAs are mostly owed to large private corporate houses, who had taken these loans to finance their projects during the period of economic boom between 2003 and 2012, in sectors like power, steel, telecommunications, civil aviation etc. Once the boom went bust, these big corporates could not pay back the loans, with many of the projects remaining incomplete. A section of the corporates has wilfully defaulted on their loans, like Vijaya Mallya of Kingfisher. They have deliberately squandered the resources of the PSBs. Interestingly many such loans to these corporate were sanctioned by the respective Bank’s board, which had representatives of the Government and the Reserve Bank of India who are now questioning the efficiency of PSU Banks. In keeping with their neoliberal policy vision, however, the Government of India and the RBI are now pushing for the divestment of Government equity in the public sector banks, in order to raise resources for capital infusion into the PSBs. The Government and RBI is mooting consolidation of PSU Banks with the ulterior objective of privatizing the Banks and hand it over on a platter to big corporate houses, which owe thousands of crore of rupees to the PSU Banks. The Union Cabinet has approved the Financial Resolution and Deposit Insurance (FRDI) Bill, 2017, which could pave the way for liquidation of PSU Banks including State Bank of India. It would be detrimental to millions of citizens for whom PSU Banks have been a lifeline. Before 1969 all the big corporate houses were having their own bank taking care of their own interest were unmindful of the interest of the common man like farmers, artisans, small business man, traders, service providers. The middle and lower strata of the society were not having access to the banks promoted by the corporate bodies. These common people were in the clutch of money lenders exploiting them. With a motive for all-round development through five years plan, 20 points programme and to have a control on the capital the bank nationalisation was done with a motive of development of the country... The recent strategy of the Government is again pushing back the countrymen to that stage of money lender at the behest of World bank and IMF so that the corporate can have the control on capital without any liability and responsibility of social welfare. The worst sufferer will be the common man.. Rather than diluting government stakes in the banks, the Government needs to focus on strengthening the PSBs in order to develop India’s financial system and ensure financial inclusion. We should never forget that it was nationalisation of the commercial banks, which had paved the way for the expansion of the banking sector in India and helped in building a resilient financial sector. Further expansion, technological modernisation and improvement in the service quality as well as the financial performance of the PSBs should be brought about, while maintaining its public sector character and safeguarding its social role. We, the citizens, of the country, feel that in the interest of the nation, we have to thwart the sinister design of the Government to consolidate and privatise PSU Banks. We appeal to every citizen of the country to come forward and join the movement 19JulysavePSUBanks and join us at Jeevan Deep Building at 5-30 pm on 19th July, 2017 to take part in a historic rally commencing from Jeevan Deep building to Rabindra Sadan and back. If you or your family have benefitted directly or indirectly from any of the PSU Banks then do join the movement.

 

Sir what a marvelous elucidation of PSB ...hope our country chaukidar will see defaulters interest in divesting of PSB....so we have to fight for our status