It refers to Governor of Reserve Bank of India –RBI- Urjit Patel rightly raising question-mark on too many public-sector banks. Unfortunately India still lacks quick and swift decisions on matters of larger public-interest. Even merger of associate-banks of State Bank of India into State Bank of India was done years after the move was initially proposed. Union Finance Ministry should take a swift decision to merge presently existing too many public-sector banks into some limited number so as to save a lot on overheads and provide economical and faster fund-transfers rather than requiring costlier and time-consuming clearing-operations. Smaller public-sector banks can be merged into some big public-sector banks in a manner that head office of each of such bank may be in metro-cities of different parts of the country.
Merger-move will eliminate nearing bank-branches of so many public-sector banks having insignificant business. Surplus staff being thus available by closure of bank-branches with insignificant business will be well utilized to overcome shortage of bank-staff usually presently witnessed in bank-branches. Availability of surplus bank-staff can then also be utilized for providing seven-days-a-week banking by providing two weekly holidays rather than present one-and-a-half by rotation. It is also time to have clearing operation in night so that all cheques deposited for clearing may be compulsorily presented in night-clearing to get clear balance on the following morning. However bank-employees should be ensured about secured service or suitable compensation through Voluntary Retirement Scheme (VRS). Moreover in case of any such mega-merger, further recruitments in banks can be suspended till the surplus staff so created because of such mega merger-plan is suitably accommodated.
There must be uniformity in interest-rates, bank-charges and facilities for all public-sector banks. For example FDR-linked savings-accounts presently existing as CorpClassic in Corporation Bank is presently not available in all public-sector banks. 8-percent government-bonds of six-year duration presently available in very few bank-branches should be available in all branches of public-sector banks. All government-savings schemes presently available in post-offices should be available in all public-sector banks.
MADHU AGRAWAL