The Syndicate Bank Staff Association has opposed RBI decision to permit agents of banking correspondents (BCs) to serve customers of more than one bank.
This would undermine the very base of the industry, according to Mr K. S. Bhat, All-India Secretary of the association.
The new decision would not just give rise to frauds but also bring about unwanted and unhealthy competition amongst banks.
It is sought to be introduced at a time when most banks are still learning the basics of handling the core banking solution (CBS) at the backend.
After seven/eight years of introduction, only 25 percent of the work has been moved to the CBS platform.
Most banks have failed to update the technology and the employees at the counters are being made to deal with frequent system crashes.
Customer relationships would be another casualty if the decision were to be implemented without foresight, Mr Bhat said.
This is because a customer may find it difficult to figure out which bank he is transacting business with since he knows only the BC or his agent.