Statement warning against the privatization of banks

Stop Privatisation!

Democratise Banking!

New Delhi, July 19, 2021: 19th of July is marked as the bank nationalisation day, recognising the historical decision of the Indira Gandhi government to take control of private banks. It is not an exaggeration to say that the nationalisation of banks was a decision that rewrote the history of banking in the country. Today, 52 years after nationalisation, when we are facing an unprecedented onslaught of privatisation that threatens not just the banks but every public sector enterprise and institution, the nationalisation day gains importance.

The significance of the decision lied not just in the fact of government taking ownership of banks, but the context in which the decision was taken. The period preceding nationalisation, the country was still dealing with after-shocks of the two wars – economically, socially and politically, droughts, agriculture failure, high inflation leading to devaluation of the currency. While the government of the time took the decision of nationalisation against the wishes of leading industrialists of the time like the G.D. Birla and J.R.D Tata, the government of today has surrendered to the demands of corporates like Gautam Adani and Mukesh Ambani. Today, when the country is facing a much severe crisis with the economy contracting to 7 percent, the pandemic and lockdown induced impoverishment, rising unemployment etc., the government is on a drive to sell the assets of country to hide its incompetence in governance.

The achievements of the public sector banking and its systematic dissemination in the last three decades of neo-liberal regime are for all to see. While privatization of banks had been on the agenda for the past 30 years by various governments, this government aims not just to privatise, but has a deliberate anti-poor agenda. Every economic policy of the current government has forced people into poverty – the case of banks is no different. The resolve for us, at the time when the government is likely to propose an amendment to the Banking Act, is to reaffirm the social and political vision of nationalisation.

It is important to relook banking from the perspective of social responsibility – smaller loans that help people and small businesses, affordable access to credit for marginalised and most oppressed, removal of bank charges, shifting the burden of financing large scale projects to development banks, reduce interest rates for SMEs, SHGs and farmers, revamp IBC (Insolvency and Bankruptcy Code) and stopping the loot of public money in the name of hair-cut, strengthening of cooperative and rural banking, measure of success through social profit and not absolute profit, are few crucial steps to bring back the spirit of nationalisation.

The fundamental question being whether we principally consider banking to be geared towards the people, the poor or would it be directed only towards profitability wherein the corporate sharks call the shots at the expense of people’s interest. The responsibility to democratise banking system rests on the pressure created by people and their fight for accountability rather than faith in governments. For, it was the same government which nationalised banks, that also imposed emergency, curbing all civil rights. As we live in times of an undeclared emergency where dissent is considered sedition, we have a tough but a historical responsibility to reclaim democracy and public institutions.

On the day of nationalisation, Financial Accountability Network India (FAN India) recognises the need for democratisation of banking, bringing back the focus on people rather than profit and the need to stand united against all anti-people, anti-democratic and anti-national measures of this government!!

About FAN India:

Financial Accountability Network India (FAN India) is a collective of civil society organisations, unions, people’s movements and concerned citizens to raise the issues of accountability & transparency of national financial institutions and economic issues impacting peoples’ lives.

For more information, please contact:
Priya Dharshini, +91 – 93115 48645
Financial Accountability Network India (FAN India)
fanindia.info@gmail.com

Endorsed by:

1. A V Joseph, State Bank of India Officers Association
2. Akhil S, NCBE
3. Amaranathan, Union Bank of India
4. Amutha, Thulasi SHG
5. Anand B, All India Bank Officers Confederation
6. Anandhi, Keechankuppam Village Organising Committee
7. Anil Kumar, UCO Bank
8. Anirban Bhattacharya, Centre for Financial Accountability
9. Anjali, Akkaraipettai Village Organising Committee
10. Archana Prasad, Jawaharlal Nehru University
11. Arun Kumar Sahoo, UCO Bank, All India Bank Officers Confederation
12. Ashalatha S, Social Activist
13. Ashish Kajla, Financial Accountability Network India (FAN India)
14. Ashok Choudhary, All India Union of Forest Working People
15. Ashok Dash, All India Bank Officers Confederation
16. Avinash Kumar, Jawaharlal Nehru University
17. Benny Kuruvilla, Focus on the Global South
18. Bhagyavathi, Akaraipettai Village Organising Committee
19. Bilal Khan, Ghar Bachao Ghar Banao Andolan
20. C P Krishnan, Bank Employees Federation of India
21. Chirashree Das Gupta, Jawaharlal Nehru University
22. Deshdeep Dhankhar, University of Hyderabad
23. Dev Desai, ANHAD
24. Devidas Tuljapurkar, Maharashtra State Bank Employees Federation, AIBEA
25. Dr. R. V. Kumaravelu, Fish Workers Union / NFF
26. Dr. V. Sasi Kumar, Climate Kerala
27. G D Nadaf, former General Secretary, AIBOC
28. G H Krishnamurthy, KVGBOF / AIRRBOF / AIBOC
29. Gautam Mody, New Trade Union Initiative
30. Gokila, Street Kaliyaman Sangam
31. Harbans Singh, UCO Bank
32. Ilakya, Village Organisation Committee
33. J John, Labour Rights Activist
34. Jai Narayan Purohit, All India UCO Bank Officers Federation
35. Janakarajan, Former Professor, Madras Institute of Development Studies
36. Jayavalli, Thulasi Sagam
37. Joydeep Bhowmick, All India Bank Officers Confederation
38. K. Vennila, Women Fish Workers Federation
39. K. B. Kulkarni, Union Bank Pensioners and Retirees Association
40. Karthikeyan, Fisherman
41. Kashee Nath Chatterjee, All India Peoples Science Network
42. Khalida Parveen, Amoomat Society
43. Koninika Ray, National Federation of Indian Women
44. Kripal Singh Mandloi, Khudai Khidmatgar
45. Krishnakant Chauhan, NAPM
46. Lissy Joseph, Telangana Domestic Workers Union
47. M. M. Gaikwad, All India Bank Officers Confederation
48. Madhukumar, SBI Pensioners Association
49. Madhuresh Kumar, National Alliance of People’s Movements
50. Mehala. N, Neelakkadal
51. Mitesh, AIBEA
52. Meera Sanghamitra, National Alliance of People’s Movements
53. Mudita Gupta, UCO Bank
54. Murali, IOBOA
55. Nagalsamy, Office of Comptroller and Auditor General of India
56. Nasir Tyabji, Formerly with Jamie Millie Islamia
57. P Mahesh, UCO Bank
58. Padma Priyadharshini, UCO Bank
59. Pakkirisamy, Youth Organisation
60. Ponniah Rajamsnickan, AIPSN
61. Poonkodi. P, Ocean Pearl Organisation
62. Prafulla Samantara, Lok Shakti Abhiyan and NAPM
63. Praveen Jha, Jawaharlal Nehru University
64. Prince Saurabh, AIPNBOA
65. Prem Lal Sahu, All India Bank Officers Confederation
66. Prof Sushil Khanna, IIM Calcutta (retired) and National Working Group on Public Sector
67. R. Elangovan, Dakshin Railway Employees Union
68. R. Sethu, SBIPA
69. Rajat Thakur, Journalist
70. Raghunath TP, Pondicherry Science Forum
71. Rajakumari, Vangakadal
72. Rajendra Ravi, Institute for Democracy and Sustainability
73. Rajesh, SMCC
74. Rakesh Verma, AIUCBOF / AIBOC
75. Rishiraj Dass, UCO Bank / AIUCBOF / AIBOC
76. Rohit Aazad, Jawaharlal Nehru University
77. Rupam Roy, All India Bank Officers Confederation
78. S. Jeevan Kumar, Human Rights Forum
79. S Nair, AIPNBPRA
80. S. Prakash, Youth Club
81. S.M.L. Syriac Loyola, Retired Bank Manager
82. Sangari. K, VCS SHG
83. Sanjeev, Dalit Adivasi Shakti Adhikar Manch
84. Saroja, Women Fishworker Federation
85. Shakila, Fisherwomen Federation
86. Shashank SR, NAPM Karnataka
87. Shriman Narayan, UCO Bank
88. Siddharth Sunil, SRCC
89. Sitaram Shelar, Center for Promoting Democracy
90. Sreehari Dabbu, All India Bank Officers Confederation
91. Sridhar V, Frontline Magazine
92. Sridhar Ramamurthy, Environics Trust
93. Srijan Kumar Pal, All India Regional Rural Bank Officers’ Federation, AIBOC
94. Srijita Majumder, RTE Forum
95. Srikanth L, Cashless Consumer
96. Sumathi, Thulasi Sagam
97. Sumathy, Keechankuppam Village Organising Committee
98. Surajit Mazumdar, Jawaharlal Nehru University
99. Suresh Garimella, Senior Researcher, Centre for Equity Studies
100. Swathi Kalvakuntla, UCO Bank, AIBOC
101. T Swaminathan, Retired Academic
102. Tamilselvi, Thamari Sangam
103. Tenzin Yanki, UCO Bank
104. Thomas Franco, People First
105. Uma Devi. A, Desiya Malar
106. V. Lakshmi, Vangakadal
107. Vappala Balachandran, Former Special Secretary, Cabinet Secretariat
108. Venkatesh Athreya, Gulati Institute of Taxation
109. Vijayakumari. N, Nambiyarnagar Village Coordination Sangam
110. Vijayalakshmi, SHG Member
111. Vijayashanthi, Sri Kali Amman Sangam
112. Vijayan MJ, Pakistan India Peoples’ Forum for Peace and Democracy
113. Vysakh V J, State Bank of India
114. Dhivanisri
115. Karthik
116. N Kondaiah

This statement was originally published here.

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