Indian bank employees threaten to strike

The plan is on 20 December.

Fearing the loss of their jobs, some 500,000 Indian private sector bank are protesting the government’s attempts to speed-up proposed amendments to banking laws.

To strike will be the All-India Bank Employees Association and Bank Employees Federation of India. Both AIBEA and BEFI are also opposed to attempts to group the banks for functional coordination with a view to ultimately merge them.

The government in March 2011 approved the introduction of a Banking Laws Amendment Bill 2011 in Parliament. Among other changes, the bill seeks lift the 10% voting rights limit in private sector banks and pave the way for RBI to give additional banking licenses to private sector players.

The proposed bill will amend the Banking Regulation Act, 1949 so as to remove the voting rights cap for private sector banks. The legislative intent is to make voting rights commensurate with economic ownership.