Bank Workers and the Need for Strengthening the Left in Lok Sabha
SS Anil
or reload the browser
THE 18th Lok Sabha election spans seven phases from April 19 to June 1, 2024, with vote counting set for June 4. The upcoming election in India holds great significance and the critical question is who should represent us in parliament to safeguard the country's constitution, democratic principles, and secular values. Here, the bank employees also have to take a definitive side.
Data from the Indian Banks Association reveals 7,72,571 employed in public sector banks, from housekeepers to general managers. In the private sector banking industry of the country, which includes both traditional and modern private banks, small finance banks, and payment banks, there are a total of 7,69,890 permanent employees. Additionally, there are approximately 3,00,000 daily wage and contract workers. The Reserve Bank of India (RBI) has introduced a new work culture in these banks by involving business correspondents (BCs) as per an official order. The role of BCs, as explained by the RBI, is to provide banking services in areas where there are no bank branches. However, the practice of employing BCs is part of a neoliberal agenda to exploit workers. Opening new branches in rural areas would not only have improved banking services for the rural population but also created more employment opportunities for rural youth, thereby positively impacting the rural economy. According to RBI figures released on March 31, 2022, there are a total of 22,18,000 BCs working in various banks across the country. Thus, when including BCs, the total number of employees in public and private sector banks in the country is approximately 40,60,000. Additionally, nearly 1 million individuals are employed in different cooperative banks, and 91,664 in Regional Rural Banks (RRBs). The RBI has a staff strength of 13,298, and NABARD has 3,000 employees. In summary, the livelihoods of 5 million employees and their families depend on the banking sector.
IMPOSING THE "AGNIVEER"
CULTURE IN BANKS
Among the 5 million employees, over half are comprised of BCs, daily wage/contract workers, and those under the cost-to-company system, with only 50 per cent of the remaining 2.5 million having fixed wage and service agreements. This unfavorable employment culture in banks can be attributed to imperialistic neoliberal policies, initiated by the Congress party in 1991 and aggressively pursued by the BJP now.
The central government is actively working to abolish permanent employment even in public sector banks (PSBs), a process initiated by the Congress government, which began with contractualisation of class IV or housekeeping cadre. The State Bank of India led the way in implementing such reforms, full contractualisation of class IV cadre. Under the Modi government, recruitment of non-permanent staff like apprentices for three years in the clerical cadre began, with other PSBs following suit. In this context, workers must understand the risks associated with the four labour codes, replacing 29 labour laws without discussion and despite opposition suggestions. These codes form the basis for implementing the fixed-term employment system in the army, known as "Agniveer."
BANKING POLICIES BIASED
TOWARDS CORPORATES
Let's examine banking policies. In the past decade, since the Modi government took office, a total of Rs 14,56,226 crore in bank loans have been written off, with 80 per cent attributed to loans exceeding Rs 5 crore. According to RTI inquiries, corporate loans account for Rs 7,40,968 crore of the written-off loans, revealing that more than half (51 per cent) of the write-offs are associated with loans provided to large corporations, highlighting how these corporations exploit public funds.
In 2017, the central government introduced the Insolvency and Bankruptcy Code (IBC), aimed at reducing corporate loan burdens. Under the IBC, corporations defaulting on Rs 23.19 lakh crore in bank loans are being auctioned off. Post-auction, defaulting firms are transferred to other corporations for a fraction of their outstanding loan, known as a "haircut." For instance, Reliance Infratel, with Rs 47,251 crore debt, was sold to Mukesh Ambani's Jio Infrastructure for Rs 455.9 crore. Similarly, thirteen companies of Venugopal Dhoot, owing Rs 71,433 crore, were acquired by the Vedanta Group for Rs 2962 crore, with the group contributing Rs 25 crore to the BJP through electoral bonds, illustrating crony capitalism in operation.
The country's commercial banks hold Rs 204.75 lakh crore in deposits and have provided Rs 164.35 lakh crore in loans, primarily sourced from hardworking individuals. However, the current government's policy favors granting more loans to corporations, leading to their wealth accumulation by lakhs of crores, while loan repayment has significantly declined. A substantial portion of the Rs14.56 lakh crore written-off loans and the entire Rs 3.19 lakh crore set aside for "haircuts" consist of outstanding corporate debt. It's concerning that corporations spend public funds recklessly, supported by ruling parties passing laws facilitating such bank looting, with both the Congress and the BJP voting in favor, while only left parties in Parliament oppose and vote against such laws.
ELECTION
MANIFESTOS
Political parties have unveiled their election manifestos to communicate their policies to voters. Proponents of the ruling party, including Arvind Panagariya, former chairman of NITI Aayog and finance minister Nirmala Sitharaman, have signaled plans to privatise public sector banks if re-elected, viewed as dismissive towards depositors and risking funds in speculative businesses. Additionally, labor code implementations coupled with privatisation threaten permanent employment and workers' rights. Amidst this, alternative voices from other parties offer different policy directions, warranting consideration. Here is one election manifesto with alternative policies:
- "Public Sector Banks will be strengthened and privatisation halted. The amendments proposed in banking laws to reduce the government stakes in PSBs will be withdrawn. Private sector banks will also be included in the list of banks for disbursing priority sector loans. Effective capital control measures will be introduced to reduce the risk possibilities of the banks."
- "Interest rates of big-ticket loans will be hiked and that for small loans will be brought down. Interest rates of saving bank account and retail deposits will be increased. Service charges will be reduced in the case of ordinary retail beneficiaries covered under financial inclusion programme."
- "Non-Performing Accounts (NPA) would be got rid of by seizing the assets, including binami properties, of corporate defaulters. Amendments will be made in criminal laws to punishwilful defaulters and recover their loans. IBC will be withdrawn."
- "Regional Rural Bank Amendment Act, passed in 2015, will be scrapped."
- "Co-operation will be retained as a state subject. Banking Regulation Act-2020, will be withdrawn. PACS will be allowed to accept deposits under the supervision of the RBI. Co-operative banks will be strengthened to protect people from usurious moneylenders. Co-operative banks will be exempted from Income Tax".
- "All the anti labour and pro employer amendments made through 4 labour codes will be scrapped"
- "Proper implementation of all labour laws including those related to interstate migrant workers will be ensured. Compensation will be provided to all the workers affected by retrenchment and closure. Provisions of the Industrial Dispute Act will be put into practice. Labour departments and enforcement agencies will be strengthened. Industrial tribunals and labour courts will be set up in all districts and industrial centres."
These excerpts are from the manifesto of the Communist Party of India (Marxist), reflecting views shared by the Bank Employees Federation of India. Bank workers have actively organised agitation programmes and strikes to pursue the manifesto's objectives.With a diverse workforce representing various religious backgrounds, the central government's exploitation of religious beliefs to divert attention from societal hardships through communalism is concerning. Hence, a cautious selection of candidates is crucial, considering the potential consequences of continued governance by certain parties.
We must prioritise our vote to defend our sector, uphold constitutional principles, safeguard democracy and secularism, and protect our right to dignified work and life. It is crucial to refrain from supporting candidates who put our livelihoods at risk, and instead vote for those who will advocate for us in parliament. Let's vote for candidates who we can be sure will support us and join forces with us when needed. Let's vote for candidates who we have confidence will advocate for our interests in parliament. Let's vote for Left candidates and those supported by the Left.
or reload the browser
or reload the browser
