For the past three decades, in the name of new economic policies,
successive Governments have been pursuing and advocating banking
reforms measures like privatisation of Public Sector Banks,
encouragement to private sector banks, open tap banking license
policy, liberalisation of banking regulations, weakening, if not
dismantling, social banking, concessions to corporate defaulters,
weakening priority sector credit, commercialisation of rural credit, etc.
There is repeated and orchestrated propaganda from votaries of
private sector banking that public sector banks are not efficient, public
sector banking is no longer relevant, private banks serve the people
more efficiently, etc.
Nationalised Banks – pillars of our economy:
Banks were nationlaised in 1969 with a very clear social and economic
objective of broad-basing the economy and its development. In the
last more than 50 years, public sector banks have made a
phenomenal contribution in building up a strong economy with a
visible social orientation. 8000 Branches have become 86,000 bank
branches today, out of which 42,000 branches are located in rural and
semi-urban areas which were earlier neglected. Credit to priority
sector has boosted our economy resulting in achievements like green
revolution and white revolution, boost to agriculture sector, job
generation, rural development, poverty reduction in village areas, etc.
In 2008 when the entire globe was facing financial turmoil and
banking tsunami, where private banks all over the world collapsed like
a pack of cards, Indian banking system was safe because of our public
Govt. wants sabke saath, sabka vikas but wants to cut the
lifeline to prosperity:
The Government talks of progress and prosperity for all but
unfortunately, they are pursuing the policy of privatisation of banks
who will not come forward to participate in the Government schemes
and plans to ameliorate the economic conditions of the poor people
and common masses, particularly those who are in the rural areas.
It is only the public sector banks which have stood by and even today
stand by the common people and rural economy.