BEFI opposes the removal of floor on SLR

Kolkata, Jan 18 (UNI) Bank Employees Federation of India (BEFI)today strongly opposed the recommendations of the Standing Committe of Finance for the removal of 25 per cent floor on Statutory Liquidity Ratio(SLR) of banks and retainining the maximum limit of 40 per cent.

Expressing the Federation's strong reservation over the issue, BEFI General Secretary Pradip Biswas in a statement here described the proposal as "against the interest of the nation".

"It is our considered view that the removal of floor on SLR will add to the already existing excess liquidity leading to further inflation which in turn will deprive the government of the required fund for spending on development of public sector units and infrastrucral projects", Mr Biswas observed.

He also urged the Finance ministry and the RBI not to consider implementation of the Standing Committee's proposal and said BEFI considered it would do no good to the banking industry as a whole too.

UNI