Banks collect Rs 35,000 crore penalty

unions oppose privatization and demand reforms

Lokmat News Network

Chhatrapati Sambhajinagar

Banks collected Rs 35,000 crore in penalties from customers over the past three years for not maintaining minimum balances, according to a parliamentary report. The All India Gramin Bank Officers and Employees Association has opposed these penalties and the privatization of public sector banks, said Joint Secretary Devidas Tuljapurkar during a press conference on Saturday.

The fifth joint convention of the All India Bank Employees Association and All India Bank Officers Association began on Saturday at Yashwantrao Chavan Auditorium hosted by the Marathi Sahitya Parishad. Addressing the event, Tuljapurkar said banking services are now digital, but staffing levels remain inadequate. He also criticized the government for burdening banks with various schemes and planning to privatize public banks.

Tuljapurkar highlighted frequent failures in cooperative banks and cybercrimes causing financial losses. He said Maharashtra Gramin Bank holds monthly village meetings to educate customers about banking services. He revealed that according to a parliamentary report, public sector banks have collected Rs 35,000 crore in penalties over three years for non-maintenance of minimum balance. Tuljapurkar noted that the State Bank of India (SBI) has stopped levying penalties for non-maintenance of minimum balances after public protests, but other banks continue to do so. General secretary D.N. Trivedi, C.H. Venkatachalam, and vice president N. Shankar were present at the press conference.

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Key issues at the convention

The two-day convention will discuss several issues, including opposing the privatization of banks, ensuring recovery of non-performing assets instead of writing them off, stopping concessions to defaulters, recruiting permanent staff, and ending the reliance on contractual and outsourced employees.