Bank unions are opposed to the RBI’s new bank licensing policy by which private industrial, business and corporate houses will be permitted to open their own banks.
The United Forum of Bank Unions, a representative body of nine bank unions, has called for countrywide demonstrations by bank staff on March 18 in this regard, C.H. Venkatachalam, General Secretary, All India Bank Employees Association (AIBEA), said.
According to the RBI’s latest guidelines, any private sector company, including non-banking finance company, can open a bank.
The total capital requirement would be Rs 500 crore, out of which the promoter company need to bring only Rs 200 crore which can be further reduced to Rs 75 crore after five years.
Foreign capital will be allowed up to 49 per cent in these banks which can be increased to 74 per cent after five years.