Bank strike: FM clarifies on outsourcing

Faced with a nationwide strike by bank employees, the government assured on Friday that proposed outsourcing would be implemented only under a well defined policy and RBI was exercising utmost caution to ensure that any possible risks were addressed.

Making a statement in the Lok Sabha on a calling attention notice by Gurudas Dasgupta, Finance Minister P Chidambaram said the draft guidelines issued by the RBI to regulate some non-core activities have not yet been finalised.

He said a proposal was being examined to consolidate all the clearing houses under an umbrella non-profit organisation, which would be owned by banks.

The proposal does not involve outsourcing of any of the clearing related work currently being undertaken by clearing houses, he said.

Chidambaram said the proposed company was expected to bring greater efficiency and standardisation at the service level and would also introduce new technologically advanced payment systems in the country and this would benefit the bank customer.

"The parent bank will be fully accountable for the conduct of its outsourced agent and shall undertake outsourcing only under a well-defined policy of the respective boards of the banks," he said.

The finance minister clarified that the outsourcing was proposed only in areas in which the banks do not have the requisite expertise and from they would derive cost benefit advantage. 

Staff march to Parliament: RBI employees took out a march to the Parliament on Friday in protest against the government's proposed move to outsource cheque clearing system and to press for pension-related demands.

Addressing employees, who were stopped at Jantar Mantar in New Delhi, leaders from the Left parties assured them of raising their concerns in the Parliament, particularly over outsourcing of cheque clearing system.

Meanwhile, Finance Minister P Chidambaram said in the Lok Sabha a proposal being examined relates to consolidation of 1030 clearing houses under an umbrella organisation and initiative to this effect is being taken by Indian Banks' Association.

The march coincided with a strike by public sector banks employees against outsourcing and to press for pension as an additional option.

However, the march has not affected the functioning of the bank unlike the strike called by PSU banks employees.

But, if RBI employees' demands are not met, they will strike work next month, United Forum of Reserve Bank Officers and Employees General Secretary Samir Ghosh said.

CPI-M Politburo member Brinda Karat said cheque clearing system is being outsourced to a private party despite it being efficiently managed by the RBI.

Abani Roy of the Revolutionary Socialist Party said the time has come to think of withdrawing support to the United Progressive Alliance  government if it continues with 'anti-people's' economic policies.

He, however, hastened to add that his party has three MPs and even if they withdraw support, the government would survive.

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