Finance minister Nirmala Sitharaman had announced in Union Budget 2021 that two public sector banks were going to be privatized during the current fiscal as part of the government’s Rs 1.75 lakh crore disinvestment target.
New Delhi: Banks have announced a strike on December 16 & 17. This strike will affect banking and ATM services. They are holding strikes to protest against the central government’s decision to privatize public sector banks. The Union Forum of Bank (UFBU), an umbrella body of 9 bank unions has called a two-day strike from December 16. State Bank of India, Punjab National Bank, Bank of Baroda, and Central Bank of India, and several other public sector bank services are likely to face disruption in the wake of bank strikes.
Why Bank Unions are Going on a Strike on December 16-17?
Finance minister Nirmala Sitharaman had announced in Union Budget 2021 that two public sector banks were going to be privatized during the current fiscal as part of the government’s Rs 1.75 lakh crore disinvestment target. To amend the provision in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, which makes it mandatory for the government to hold 51 percent stake in public sector banks at all times, the Centre had decided to introduce the Banking Laws (Amendment) Bill, 2021 in the ongoing Winter session of Parliament. The new bill will reduce the government’s minimum shareholding to 26 percent. Bank unions are urging the Centre to withdraw the Banking Laws (Amendment) Bill, 2021. It must be mentioned that the Bill might not be introduced during the winter session of Parliament.
“We reiterated our stand that if the government would assure that the Bank Privatization Bill (Banking Laws Amendment Bill, 2021) would not be tabled during this session of the Parliament, we would be inclined to reconsider the strike but the government could not give any such assurance to us,” AIBEA General Secretary CH Venkatachalam said.
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.
