Bank Unions Challenge Privatization of State-Owned Lenders

Bank unions have criticized Finance Minister Nirmala Sitharaman's support for privatizing state banks, arguing it undermines financial inclusion and social interests. They lauded public sector banks for driving priority lending, rural banking, and national resilience, urging capital support without privatization.

Bank unions have voiced strong objections to Finance Minister Nirmala Sitharaman's recent comments advocating for the privatization of state-owned banks.

The United Forum of Bank Unions (UFBU), which represents multiple bank trade unions, emphasized the role of public sector banks (PSBs) in enhancing financial inclusion, particularly highlighting their dominance in opening 90% of Pradhan Mantri Jan Dhan Yojana accounts.

They argued that PSBs are integral to priority lending, social banking, and rural financial services, warning that privatization threatens national interests and financial inclusion objectives.

(With inputs from agencies.)