Finance minister Nirmala Sitharaman on Thursday said the country needs big and world-class banks, and discussions are on with the Reserve Bank and lenders in this regard.
“We are discussing with the RBI, we are discussing with banks. It’s not just by creating among those which exist today just by amalgamation. That can also be one of the route.
“But you need to have an ecosystem and also an environment in which more banks can operate and operate to grow. That environment is actually well established in India, but it needs to be a bit more dynamic,” she said.
Unions on privatisation
Bank employees’ unions have criticised Nirmala Sitharaman’s remark on privatisation of state-owned lenders and demanded that they should rather be strengthened with capital support to further the financial inclusion drive.
The United Forum of Bank Unions (UFBU), representing nine trade unions of officers and workmen across all banks, said: “If Indian banking today stands strong, it is because of resilience built under public ownership ... no country in the world has achieved universal banking through privatising banks. To say privatisation will still ensure inclusion is not supported by any evidence.”
The UFBU has demanded a categorical assurance from the Centre that no public sector bank will be privatised and strengthening of PSBs through capital support, technological modernisation and transparent governance, without privatisation.
