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Bank unions oppose privatisation but Centre must remain firm

Finance Minister Nirmala Sitharaman

Amid Finance Minister Nirmala Sitharaman’s call to privatise two public sector banks and one general insurance company, the All India Bank Employees' Association has opposed the move. While the proposal received support from across spectrum, the union claimed that if banks are privatised, rural branches will be closed in the name of non-viability and profitability. “Privatisation is anti rural,” it said.

Analysts said that the banks that are not performing well must be privatized at the earliest. “Neither do these banks perform, nor do they have able staff. Several public sector banks are gradually losing out,” an analyst said, adding that the government must not buckle down amid pressure from the unions.

“The unions must be handled but reforms in the financial service sector will be critical in laying the growth roadmap,” he said.

Meanwhile, Prime Minister Narendra Modi has begun a campaign to highlight the fruitlessness of the government to be involved in businesses.

Modi and his team have started underlining the importance of the private sector in the country’s growth story. Earlier, Sitharaman at a function said that India’s growing aspiration along with various other demands cannot be only served only by central and state governments. She urged the private sector to increase participation and investments.

Going ahead, the BJP will work on the ‘Good economics is good politics’ plank.