All-India bank strike on October 22 against merger of 10 PSBs

In August 2019, Finance Minister Nirmala Sitharaman had announced the merger of 10 public sector banks

All India Bank Employees Association (AIBEA) and Bank Employees Federation of India (BEFI) have called for a strike across the country on October 22 to stage a protest against the mergers of 10 public sector banks (PSBs). This comes after the financial institutions issued a letter in the public domain calling "Merger of Banks is the murder of Banks."

"The government may call it a merger but in reality, it is cold-blooded murder of 6 Banks (Allahabad Bank, Andhra Bank, Corporation Bank, Oriental Bank of Commerce, Syndicate Bank and United Bank of India). Because, after the merger, these 6 Banks which have been built up over the years, will disappear from the banking scenario," the letter reads.

"The government talks of prosperity for all but by closing down these 6 Banks, 6 main arteries of the banking system are being cut off. The victim Banks, viz. Allahabad Bank, Andhra Bank, Corporation Bank, Syndicate Bank, United Bank of India and Oriental Bank of Commerce are very good Banks and have catered to the economic development in the respective geographic areas in a big way. Suddenly deciding to close these Banks is inappropriate and unwarranted as well as harmful to the economy," the bank union further stated in its letter.

The protesters were of the view that "India country needs good banks, not big banks." The central government on August 30 announced the merger of 10 public sector banks (PSBs) into four strong lenders with countrywide networks and global reach to boost credit and revive economic growth in the nation's bid to become a five trillion dollar economy in the next five years.

After this, the total number of PSBs will come down to 12 from 24 banks, Union Finance Minister Nirmala Sitharaman had said at a press conference. Apart from this, the government announced Rs 55,250 crore upfront as a capital infusion in the PSBs.

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