Sunday, May 18, 2014

What is Nayak committee report?


 “On 20th January 2014, Reserve Bank of India (RBI) constituted an Expert Committee,

under the  Chairmanship of Shri P.J.Nayak, Ex-Chairman of Axis Bank,

to review “Governance of the Boards of Banks in India”.

The Committee has submitted its Report on 12th May 2014 recommending, inter alia,

 (i) scrapping of Bank Nationalisation Acts, SBI Act and SBI (Subsidiary Banks) Act,

(ii) Converting all PSBs  into Companies under the Companies Act,

(iii) Formation of a “Bank Investment Company” (BIC) under the Companies Act and transfer of all Shares held by the Central Government in PSBs to the newly formed BIC

(iv) Controlling authority/power of the Central Government over PSBs to the transferred to
BIC which would, in turn, hand over the same to respective Boards of the PSBs,

(v) Government’s  concern about PSBs would be limited only to earning “return on investment” and BIC’s ultimate responsibility would be limited only to ensuring a fair “return on investment” to the Central Government,

(vi) appointment of CEOs, other “inside Directors” and top Executives of PSBs would be vested in “Bank
Boards Bureau” (BBB) comprising of three serving or retired Chairmen of Banks and the Government
would have no say in the matter,

(vii) proportionate voting right to all shareholders,

(viii) reduction of Government’s share-holding to 40%,

AND LAST, BUT THE MOST DANGEROUS OF IT ALL,
(ix)  “Cases of vigilance enforcement against wholetime directors and other bank employees for decisions  taken by them must be based on evidence that the director or employee personally made a wrongful gain. For levelling criminal charges, fraud must manifest itself through evidence of self-benefit. In loan and expenditure cases, deviations from procedure must not constitute the sole basis for initiating criminal action.”

The “Recommendations” of the Committee, you shall appreciate, is a step forward to Privatisation of
Public Sector Banks in tune with the neo-liberal reforms agenda being pursued by the Central
Government since early 1990s.

 What is more alarming is that it would also open up flood gates for more liberalized loot of Banks’ Funds (that is people’s savings); as per the recommendation (point - ix hereinabove), criminal intent and/or criminal breach of trust and/or flouting of rules & regulations, etc,
would not be enough to warrant criminal charge unless and until “self-benefit” is established against the
culprit.

In tune with its tradition of struggle against all neo-liberal reforms measures,
UFBU has given a call for holding demonstrations in all centres all over the country on 21-5-2014 after office hours against the ill advised recommendations of the “Expert” (?) Panel.

Our affiliates/units are accordingly advised to HOLD DEMONSTRATIONS.


COURTESY: BEFI circular.

5 comments:

Sriram nambi varadharajan.i said...

i am fed up with government. i lefte govt bank clerical job and neglected psb officer job to join kvb ast manager. this move is welcome govt dont know to run airlines or banks or anyother company..asking for both financial inclusion and profits is riduculous...

either they shud not expect profits or they shud mot expect loan waivers..

but they do both by making employees as a scape goat they want bad talent in govt cos to do corruption may be thats y they do this.

and more injustice is not cuuting the cost of financial inclusion they do to get votes in their dividents...

.they are also not giving any credit of doing charity to other psb investors as they are forced to have small dividents...

and vow the reservation system shud be based on income levels and not by caste ...saying secular and having caste in official records is ridiculous,..


i just dont like the current system

Anonymous said...

First of all shoot this Nayak then shot Raghu ram rajan and then Privatise RBI...and if RAGHU and NAYAK are so bothered about india why they themselves form a company and raise money for india saala koi bhi chutiya chala aata hai apni report leke apne aap ko desh bahut bada hamdard ban ke...saale salary badha nahin rahe ho harami ke pillon aur private kar doge sab kuch agar aisa kuch hua toh main kasam khata huun...jahan miloge wahin peetunga aur kuch bhi nahin kar paaoge.

Anonymous said...

RBI ko private kar do...raghu ram rajan ko private me bhej do...aur yeh nayak chutiya toh private se hi hai yeh toh bolega hi private kar do somebody ask from nayak how many branches they have in rural areas...matlab hum chutiye hain jo apni private job chhodke government me chale aaye...2 saal se wage revision ataka pada hai use leke raghu ram rajan ka koi reaction nahin aaya privatision ko leke he is very active...how much bribe you have taken from private people...no raghu psb should not get free from govt. they should get free from RBI pathetic policies you guys have...if you so much concerned abt india leave your central govt. salary and work accoding to banks pay system just for one year akal aa jaayegi.

Anonymous said...

Guys they claim to be the godfather of the banking industry.what I personally feel they are idiots who are just appeasing their godfathers in the finance ministry.raghu is not an ias officer,what if he has been to iim or uni of Massachusetts,still he is holding such a top position.there has to be some sort of influence to get him this position.moreover, he has to save his job not the country.and if he will not speak in tune with the political elements that actually controll such things he will have to go outside the system.
As far as this nayak is concerned, he has been top executive of a bank and now he doent have any job.he is also busy appeasing the ministers and others who are in a position to think about him.after all by playing such tricks in the form of this non sense report, he wants to prove himself to be an Intelligent person.

Ashok Raut said...

Dear All,
1.It is basic question that in spite of securing sureties,securities,co-lateral securities etc.while sanctioning loans how the NPA r not recoverable.
2.As far as we bank employees r concerned our all loans & advances r secured against salary/FS.There is no NPA from our side except on Account of death.
3.Loans r the backbone of banking industry for income generation.Then how come more than a lakh crores of worth NPAs can pile.what r the inspections/compliance reports/internal-external audits r performed ? That means all those loans sanctioned which turned to NPAs were not taken care from recovery aspect. Who is responsible for this huge loss to the nation and to the bank employees.
4.Who has introduced the OTS in the banking industry ? If is a rule/regulation it must be scrapped ASAP.If it is not any regulation then how it is allowed.This is the measure monster which gives birth to thousands/lakhs of NPA devils.
Jai Hind
Ashok Raut
Bangalore