Now the Reserve Bank of India in complaince with the new policy of the government of India has issued duidelines to facilitate the entry of private companies in opening the new banking big way. The bank nationalisation of private banks was the main political and economic plank of the Prime Minister Mrs Indira Gandhi.
But when Mr PV Narasimha Rao became the Prime Minister and Mr Manmohan Singh his Finance Minister it was decided to forgo the policy of nationalisation and return to free enterprise gradually. By that time most of the public sectors industries and other public sector economic set up became liabilities on the nation with mounting losses. Same was the position in states in its own spheres. The Rao govt tried to repredicted the nationalisation with a new name of liberalisation. He adopts the policy of disinvestment and tried to implement in public sector banks also. But the left parties supporting the Rao govt in the Parliament and the bank unions opposed the move.
In such situation it was decided to continue the public sector banks but also to allow private sectors to come again in the banking sectors. In 1993 12 private banks were allowed to open branch and another 7 years its workability was assessed. Now government ha decided to go for it whole hog for it under certain guidelines. The Reserve Bank has laid down that new banks aspirants companies must here experience of minimum 10 years in the financial sector, listing in the share stock exchange within 3 years of operation, 25 per cent branches in rural areas and secure foreign investment up to 49 per cent. Above all initial investment of Rs 500 crores to begin with. The RBI has fixed the time limit upto July 1 to apply for opening the banks. The business and industrial giants like Tata, Aditya Birla, Bajaj, Larson & Tubro, Shri Ram, Ambani, India Bulls and many others are in line procure licences.
Even the public sector companies like LIC and ITCI are also keep to open banks. The composite banking sector in public and private sectors are coming up very fast. Some six lakhs new jobs are being created to handle the vost expansion. Even now there is shortage of hands and banks are indulging in snatching the staff of other banks on higher pay and choice of place in hostings. The Central Bank India executive has said that staffs are changing banks after 2 years of service on such offers.
All banks are now a search of trained persons. Even after retirement such persons have good chances of re-employment. Now there is fast diminishing trend in ‘desk jobs’. One must be silled in his skill and expertise. Now there is dearth of welders and electricians. The new generation must assess the new economic scenario to adjust themselves in the new atmosphere. Sometime back the Prime Minister lamented that Universities still importing education in such faculties which are not required any more.
Founder : Late Shri Ramgopal Maheshwari