Functioning of Banks to come to grinding halt on July 28

Bangalore, July 24 (UNI) Functioning of banks in Karnataka will come to a grinding halt on July 28 as its employees have decided to take part in the the nationwide strike called by All India Bank Employees Association on that day.

Informing this to reporters here today, Karnataka Pradesh Bank Employees Association President H Vasant Rai said the strike was against the Centre's move to privatise the Public Sector Banks (PSBs), and the Reserve Bank of India's proposal to outsource all normal banking services to private agencies on commission and contract basis.

He said ''Though there are sufficient staff to handle the clearing work, the RBI has taken to outsourcing with an intention to privatise PSBs. It is the first step in the direction of privatisation. It also proposed to set up a National Payment Corporation of India for clearing house,'' he added.

Mr Rai said they were demanding, among other things, immediate filling up of more than one lakh vacancies.

He alleged that the government had decided to allow 74 per cent Foreign Direct Investment (FDI) in the capital of Indian private Banks to begin with. ''If FDI is allowed, people's money will be exposed to manupulation and speculation by foreign capital.

The total capital of the 28 Private banks in the country is around Rs 3,500 crore, whereas the Deposits in these banks are more than Rs 3,50,000 crore,'' he added.

UNI MSP RG GM1740