Bank unions should work together with managements: RBI Dy Gov

Kochi: RBI Deputy Governor K C Chakrabarty on Sunday urged Bank unions to work together with managements to come out with an integrated system to make banking services available to everyone.

"The time has come that Bank unions should work with managements to come out with an integrated service to make banking services available to everyone," he said.

He was speaking at a seminar on 'Banking as fundamental right of people', organised as part of the 27th National conference of All India Bank Employees Association here.

"We need strong and responsible trade unions in the banking system so that trade union and managements can fight market forces and help in making services available to all. Banking services should be available at everyone's doorsteps," he said.

Pointing out that the trade union movement had played an important role in making service of bank employees respectable in the sector, he said, "We want a strong trade union movement in the banking system as it is a pre-condition for a strong management in the bank."

Banking is not a service provided by state. It has to be provided on commercial lines. There is need to bring down transaction costs, to make it affordable.

"We need to collectively work to bring down transaction cost so that banking service will be affordable," he said, adding there was also need to provide fair, transparent and reliable service.

If banking is to be made a fundamental right, this rule would be applicable not only to public sector banks, but to every other bank including private and cooperative, he said.

Opening of bank accounts is a fundamental right in the US, UK and European countries.

"In India, opening a bank account cannot be refused. But it still does not happen. Even after 40 years of nationalisation of banks, we are saying banking should be a fundamental right.

"Banking industry is the only industry where workmen have representation in the board. But still why has banking not gone to everybody? Why it has not gone to everyone? We are collectively responsible for this situation," he added.

PTI