Mergers Will Systematically Destroy Banking: RSS’ Trade Union Head

Mergers Will Systematically Destroy Banking: RSS’ Trade Union Head

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Video Editor: Sandeep Suman

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Saji Narayanan, president of the Bharatiya Mazdoor Sangh (BMS), a trade union which is considered the labour wing of the RSS, said the recent merger plan will destroy the banking system.

On 30 August 2019, Union Finance Minister Nirmala Sitharaman had announced merger of six public sector banks in order to streamline their functioning.

Instead of toeing the government line, the BMS has been vociferous in expressing their displeasure, which they think is a result of ‘wrong advisers’ giving suggestions to the current dispensation.

Below are a few excerpts from the interview with Saji Narayanan:

Also Read : FM Announces Several Public Sector Bank Mergers: Key Highlights

What are the concerns of the BMS regarding the bank merger plan?

India was, throughout the world, acclaimed as the least-affected country [during recession] because we had a very strong banking system. All these reforms are systematically destroying that strong basis of our banking system. That’s why we are opposing.

In a particular place, when there are 5 or 6 branches, all those branches will be closed and they will be consolidated to one branch. That will create problems for the consumers. The lifeline of Indian banks is a relationship with the consumers, that will be lost.

Why do you feel that the merger of banks will make Indian economy less immune to a 2008 Lehman-like crisis?

Many big banks at the global level, they all collapsed one fine morning. Regarding that, there was a famous statement by President Obama. He said, “Big banks create big shocks so no more mergers”. Now, whatever slowdown is happening in the country the growth rate has come down to 5%, that is all because of wrong advisers, the wrong reform path they have selected.

Do you concur with former PM Manmohan Singh that demonetisation and GST are man-made disasters?

Then the growth rate was 4.8%, now we still haven’t come to that Manmohan Singh ‘line’. And that economic survey had also pointed out that external trade deficit was the lowest since independence. It also said that the manufacturing crisis was largest since 1991 after he started the reforms. So who’s the man who made the crisis? That’s the question.

Also Read : Mixed reactions from brokerage firms on banking merger

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