Privatization - Who is next?

 

“THEY CAME FIRST for the Communists,

And I didn’t speak up because I wasn’t a Communist.

THEN THEY CAME for the Jews,

And I didn’t speak up because I wasn’t a Jew.

THEN THEY CAME for the trade unionists,

And I didn’t speak up because I wasn’t a trade unionist.

THEN THEY CAME for the Catholics,

And I didn’t speak up because I was a Protestant.

THEN THEY CAME for me,

And by that time no one was left to speak up.”

-          Martin Niemoeller

The above poem describes very well about the current situation of Indian republic and its government's action. Till now we all know that The BJP led Central Government has set to privatize lot of public infrastructure, industries and institutions. The government is doing this in the name of disinvestment and for accumulating funds for development. One by one government is in a race to make almost everything privatize. As per Times of India’s report over 300 PSUs may shrink to barely two dozen as the budget made it clear that there will be only four key strategic sectors and it these key sectors there will be maximum 3-4 PSUs. The existing PSUs in the non-strategic sectors will either be closed or privatized.

One thing the people of India must understand that privatizing is not the best way to deal with. The process of privatizing shows that how weak the government is in terms of providing services to the citizens. Well to understand this let’s try to answer to the question why it is important to hold on to these PSUs, infrastructures etc.? It is important because these are the infrastructures through which the government provides services to public. If everything will be privatized then what is the meaning of electing a government. When everything will be run by corporates what will be left for the government? After BJP led Narendra Modi government came in 2014 there have been a lot of alteration and disinvestment. In addition, there have been lot of protests against the decisions taken which are claimed to be the masterstroke of Mr. Prime Minister by mainstream media (Godi Media). 

Banks plays an important role for us through the services they provide. But the government has been shrinking the number of Public Sector Banks (PSBs) either through merging together or through making disinvestment. In response the United Forum of Bank Unions which is an umbrella to 9 unions had called a two days long nationwide strike from 15th March to 16th March 2021 against Centre’s decision to privatize state owned banks. Above 10,00,000 bank employees were on strike to convey their concern to the government.

Protest against Privatization of PSBs.

Problem with privatization of PSBs:

After privatization of PSBs people will face problem at multiple layers and the people of rural area will be affected the most. 

1.       Minimum Account Balance: After bank gets privatized as a result the minimum account balance to be maintained will be increased and this can go up to 10 times of the current Minimum Account Balance requirement. Will everyone be able to maintain that?

2.       Bank Charges: Similarly bank charges will be increased i.e. for issuing Cheque books, transaction at ATM, NEFT, RTGS, IMPS, Net Banking etc. Will everyone be able to bear the charges?

3.       Closure of bank branches: Once these banks get privatized the attitude of banks will be different from present. The sole objective of privatized banks will be to make profit and in this process the banks may shut down some of the low performing banks, especially the rural branches. And if this happens, don't you think the existing customers will face a lot of problem?

4.       Customer base: This is very well known that the private banks do not entertain poor people to provide services as the poor uses bank account for his/her bare minimum earnings and hence the private sector banks are always looking for people with huge money deposits. What will happen to the current existing account holders?

5.       Crowd: At this point of time one can see that there are people in queue in front of Public Sector Banks and no queue in front of private banks. Poor and middle class people prefer PSBs over private banks because of various issues and if these service stations will be privatized the same population will shift to the left out PSBs and then it will be hard to manage the crowd in addition the workload of left out PSBs will be high than ever before. How the crowd will be managed?

I personally have been associated in Government projects for more than 4 years and know it very well that what private banks do when it comes to government sponsored schemes. In other words, we can say when it comes to the vulnerable section of people. Major lenders to Self Help Groups under NRLM & NULM are the PSBs, lenders to street vendors under PM-SVANIDHI are the PSBs, lenders to small traders and shopkeepers under MUDRA yojana are the PSBs, lenders to people under POP scheme are PSBs, opening zero balance account for everyone under PM Jan Dhan Yojana are the PSBs, insuring people under PMSBY & PMJJBY are the PSBs, giving financial assistance to low income group people to set his/her business under PMEGP are the PSBs, KCC to even small farmers are the PSBs. The list can go on and on. What one must understand what the PSBs are doing for the people of India. I cannot imagine the plight of hundred thousand of poor and middle-class people getting into problem because of government's single decision to make PSBs private. Can you?

PSBs are the backbone of Financial Inclusion and playing an important role in providing financial services to every section. The PSBs are service oriented and not only there for only making profit, their priority is to serve people. One can find bank branch at some remote locations, tribal belts etc. There are instances where the PSBs have shown their integrity and served people. One such instance is when India and the whole world was worst hit by the COVID-19 pandemic. The PSBs not only served people but made arrangements and ensured people don't have problem in maintaining Social Distance and in following other guidelines.

By making PSBs private government is directly withdrawing itself from serving people and indirectly will increase the gap between rich and poor. It appears as if the government is not working for the people but working for the corporates. It tries to centralize power; privatize everything India had created in past several years. PSBs are the window for most of the Indians to get financial services and if privatized things will be worse.

Basically, a government levy taxes on the people and in return provides services to its citizens, maintain law and order and protects from outside enemies. The was the current government is rushing towards privatization it appears that the government is running away from its responsibilities. In one hand government claims that it has collected more tax in comparison to past years and in contradiction making disinvestments to accumulate funds.

All of these makes me question on the intention of government.

- Bigan Mahakul