Govt Bank Employees Will Have Only 1-Year Job Guarantee After Privatization?
NITI Aayog, the public policy think tank of the Government of India, has now suggested that the employees of Government Banks that will be divested should be given a one year only job protection.
Previously, there was news about the Government stating that the employee interests will also be considered and they may be allowed to switch to another PSB before privatization.
Read on to find out how this works!
Government Employees To Have Only One Year Job Protection
Recently the Niti Aayog had finalised the names of the public sector banks that will be put up for privatisation in the current fiscal under government’s plan of the disinvestment process.
And now, the think tank has suggested that the employees of these nationalised banks should be given job protection for a year.
This proposal has already been put forth to the Union Ministry of Finance and the final call will be taken by the ministry itself.
On March 15 and 16, about 10 million bank employees participating from nearly 9 bank unions conducted a two-day bank strike, in response to the government’s decision of privatizing two more public sector banks besides IDBI bank.
Heavy losses were incurred due to the two day bank strike, with about Rs 16,500 crore affected due to clearance of cheques and payment instruments only on the first day of the strike.
Bank unions have now come forward and informed that if the government does not take back its decision on privatising 2 more public sector banks, it will continue to hold more strikes.
Central Bank of India and Indian Overseas Bank (IOB) To Be Privatized?
Last week, we reported that the Central Bank of India and Indian Overseas Bank (IOB) will be the next in the Union Budget’s privatisation drive to be sold off to private investors.
NITI Aayog has further recommended Bank of India (BoI) to also be sold.
Other candidates put forward by NITI Aayog include Central Bank, IOB, Bank of India, Bank of Maharashtra, Punjab & Sind Bank and UCO Bank.
Central Bank and IOB combined are worth Rs 44,000 crore and have been finalised for the govt to sell its stake in.
In the next step of the process, an inter-ministerial group of officers will review the proposal. Then a group of ministers will also review the same. After that, an approval has to be sought by the Union Cabinet.
Financial Services Department and the Department of Investment and Public Asset Management (DIPAM) will examine the proposal and its consequent legislative changes as required for the privatisation.
The overall timespan for the whole process is dependent on the prerequisite legislative changes which have to be discussed with the Reserve Bank of India (RBI).