National Federation of Postal Employees

EDITORIAL POSTAL CRUSADER MAY 2018

BANKING CRISIS

Due to wrong imposition of policies and intensification of neo-liberal economic policies most of the financial sectors are in crisis but the banking sector is badly affected now a days. Demonetization and GST has aggravated the situation more. At the time of Demonetization the common man had supported and believed the Prime – Minister who stated that due to demonetization corruption and black money will be finished, funding for terrorist and anti national activities will be stopped, forged and fake currency will be finished. The money which will not come in banks that will be the income of Govt. But surprisingly 99% cash in the form of demonetized Rs 1000/- and 500/- came back in banks. If the currency in Nepal & Bhutan may be taken in account than there will be no money left as black money. Still with some genuine citizens in India and abroad having some demonetized currency with them which they could not deposit in banks due to many reasons.

            Now again it is coming in news in electronic and print media that in many parts of country, Banks are suffering due to deficiency of cash and no cash is being put in ATMs. Banks are not able to make payments to the customers. Some banks are making payment in part and any how managing their customers.

            At the time of demonetization we had mentioned that this demonetization is not for the reasons which mentioned by the Prime-Minister but because of lack of liquidity i.e flow of money in banks.

            Some top class Industrialists who have taken loan from banks in thousand crores, they are not repaying the loans causing huge amount of NPA(Non Performing Assets) which has reached to an amount of Rs eight lakh crores. An amount of Rs two lac forty thoushand crores has already been waived by the Govt which top industrialists were deemed as they are not able to repay.

            This Banking crisis is not a simple one. This is lack of faith of common man in Govt and it’s policies as the most of the people are not depositing their money in banks and keeping a very little amount in banks because of the fear of F.R.D.I Bill in which it is proposed that in the event of crisis in Banks, the deposited money of public will be fixed in FD for 15 years and without the consent of depositor leaving only Rs onelac in the S.B account . So the people are very much afraid to keep their money in banks. After demonetization Rs 2000/- currency note has been introduced which is also facilitating in dumping of the cash.

            It has been reported by the banks that 80% of Rs 2000/- note is not coming back in the banks. A common man faces so many difficulties in taking a smaller loan for a very genuine cause but the big corporate and big companies can take thousands of crores rupees as a loan without any security and guarantee . For a common man for taking loan about 150% property is required in the form of guarantee  but for the companies which have been given A+ rating do not require any guarantee or security and thereby the big industrialists and corporates like Viajy Malya, Nirav Modi, Kothari, Mehta and other get loan easily and after that do not repay and the Banks, it’s staff and common man has to  suffer.

            After nationalization of Banks in 1969 by the then Prime – Minister Smt. Indira Gandhi a tremendous development in industrial sector was noticed as the loan was given by the Banks to establish industries. But now after Nirav Modi and others, Some of the top brass at the helm of Govt are demanding to privatize the Banks which will not be in the interest of neither common man nor Govt. A large scale unemployment  may grow after privatization . There is acute shortage of staff in Banks and employees are suffering like anything. One of the most ambitious plan of Govt. i.e Mudra Yojna in which loan is granted to an unemployed youth to establish his own business and up to Rs 50000/- loan, no security or gurantee is required. A Bank manager told that most of the loanee are not repaying back the loan and it is also becoming part of NPA.

            So the crisis in Banking Sector is purely because of wrong policies of Govt which require to be rectified.