Millennium Post

Officers rap SBI tie-up with Reliance Money

‘The basic function of a banking company is to take the money as deposit and lend the same to the needy individuals as advances. Banking institutions have already forgotten this basic important function and are slowly succumbing to sell third party products like mutual funds, insurance and units etc.’, stated an AIBOA release.

‘It should not escape the attention of the public at large, that Reliance Capital is one of the aspirants for the banking licence – another extended arm of Anil Ambani Group, which could not get the same in this recent release of sanction given by Reserve Bank of India,’ according to S Nagarajan, general secretary, AIBOA.

‘AIBOA strongly opposes the action of SBI of not recruiting the required number of staff members to handle the bank’s business, and resorting to this exercise amounts to back door privatisation of the bank with backdated effect to a private company, which was not considered for new banking licence by the controller of banking system,’ he said.

He also said that this move by SBI management was nothing but ‘outsourcing of essential services’ coupled with ‘compromising the privacy of the individual account holder, as they are already handling similar banking services.’ 

He added that AIBOA has urged the authorities in central bank of the country, and also the government of India, to step in the process of reversal as the ‘past experience of the private entities in banking sector.’
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