Time and again, it has been pointed out by various well-meaning sources how the proposed mergers of PSU Banks were detrimental to the economy, more so when a global recession has firmly set in across economies. However, in spite of the industry level opposition to the proposal, the merger of Banks has been announced by Finance Minister and also as per the Gazette Notification, issued by the Government of India on 04.03.2020. Under Section 9 of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, the merger of 10 Nationalized Banks into 4 Banks, is to be effective from 01.04.2020.
As it happens, the virulent outbreak of COVID 19 has seriously affected the entire world since the beginning of this year and countries after one another is locking down their businesses and normal life of the citizens. Your attention must have been seized of the adverse effects of the Coronavirus across the entire global economy. India has not been spared and presently we are gearing up at the national level to combat this scourge. Already public gatherings, official meetings, travel, tourism, etc. have been curtailed to the barest minimum. Many educational institutions have been closed, commercial and business establishments are encouraging their employees to work from home. All these are done by the government to check the spread of the disease and save precious human lives.
Any person with even a certain level of common sense will appreciate that the Banking activities also involve interacting with thousands of public on a daily basis, while transacting their Banking requirements, including cash transactions and other physical interfaces across the counters. There is every need to protect the bank staff too from the possible threat of Coronavirus as well as the customers using the various services by visiting the branches, offices or ATMs. A situation where the Banks may have to be shut down or severely curtail their physical interactions with customers can not be ruled away at this stage. In fact, it is high time that a task force be formed involving the government and bank functionaries to review the threat perception arising out of the pandemic and decide on the viability of the branches being kept open vis-à-vis the danger it puts the society and the country as a whole.
Any pragmatic person will clearly understand how the twin events of Bank mergers and COVID 19 scare can combine into a deadly cocktail to debilitate our economy. In this context, let us not forget how the decision of 'Demonetisation' in 2016 and the introduction of GST in 2017 affected the manufacturing, trade and services sector of the economy and hastened the lowering of GDP in spite of benign crude oil prices globally. Another fatal blow in the form of disruption in the banking sector will definitely take our economy back by years, if not decades.
Moreover, all the tasks related to the proposed merger of Banks w.e.f 01.04.2020 will involve thousands of our members, other employees, and even many of the outsourced personnel on a day and night basis exposing them to the risk of being contaminated by the virus. There will be the requirement of continuous synergy meetings of various steering committees at all levels to carry out various essential tasks related to a successful operation, post-merger. The logistics of the whole process will be quite a task to accomplish, from past experiences of previous such amalgamation of banks.
Therefore, in the interests of the country, its people and the economy the decision to merge the Banks w.e.f. 01.04.2020, must be deferred for an indefinite period. The matter may be reviewed after the effect of the Corona virus wanes and the effects of it on the economy is neutralised. This will not only be an appropriate step in terms of governance but also a very agile humanitarian act, which will redeem the faith of people.
But is anybody interested? Or am I talking nonsense? Only time will tell.
As it happens, the virulent outbreak of COVID 19 has seriously affected the entire world since the beginning of this year and countries after one another is locking down their businesses and normal life of the citizens. Your attention must have been seized of the adverse effects of the Coronavirus across the entire global economy. India has not been spared and presently we are gearing up at the national level to combat this scourge. Already public gatherings, official meetings, travel, tourism, etc. have been curtailed to the barest minimum. Many educational institutions have been closed, commercial and business establishments are encouraging their employees to work from home. All these are done by the government to check the spread of the disease and save precious human lives.
Any person with even a certain level of common sense will appreciate that the Banking activities also involve interacting with thousands of public on a daily basis, while transacting their Banking requirements, including cash transactions and other physical interfaces across the counters. There is every need to protect the bank staff too from the possible threat of Coronavirus as well as the customers using the various services by visiting the branches, offices or ATMs. A situation where the Banks may have to be shut down or severely curtail their physical interactions with customers can not be ruled away at this stage. In fact, it is high time that a task force be formed involving the government and bank functionaries to review the threat perception arising out of the pandemic and decide on the viability of the branches being kept open vis-à-vis the danger it puts the society and the country as a whole.
Any pragmatic person will clearly understand how the twin events of Bank mergers and COVID 19 scare can combine into a deadly cocktail to debilitate our economy. In this context, let us not forget how the decision of 'Demonetisation' in 2016 and the introduction of GST in 2017 affected the manufacturing, trade and services sector of the economy and hastened the lowering of GDP in spite of benign crude oil prices globally. Another fatal blow in the form of disruption in the banking sector will definitely take our economy back by years, if not decades.
Moreover, all the tasks related to the proposed merger of Banks w.e.f 01.04.2020 will involve thousands of our members, other employees, and even many of the outsourced personnel on a day and night basis exposing them to the risk of being contaminated by the virus. There will be the requirement of continuous synergy meetings of various steering committees at all levels to carry out various essential tasks related to a successful operation, post-merger. The logistics of the whole process will be quite a task to accomplish, from past experiences of previous such amalgamation of banks.
Therefore, in the interests of the country, its people and the economy the decision to merge the Banks w.e.f. 01.04.2020, must be deferred for an indefinite period. The matter may be reviewed after the effect of the Corona virus wanes and the effects of it on the economy is neutralised. This will not only be an appropriate step in terms of governance but also a very agile humanitarian act, which will redeem the faith of people.
But is anybody interested? Or am I talking nonsense? Only time will tell.
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