The Reserve Bank said under RTI that no branches of Bank of India and UCO Bank were closed in the financial year 2020-21, which ended on 31 March.
These two banks did not branch off
The Reserve Bank of India (RBI) has stated under the Right to Information that in the financial year 2020-21, a total of 2,118 banking branches of 10 state-run banks have either been closed forever or have been merged with other bank branches. Neemuch’s RTI activist Chandrashekhar Gaur told that the Reserve Bank has given this information to him under the Right to Information Act. According to the information, in the financial year 2020-21, 1,283 branches of Bank of Baroda were closed due to branch closure or merger process.
Through this process, 332 of State Bank of India (SBI), 169 of Punjab National Bank (PNB), 124 of Union Bank of India (Union Bank of India), 107 of Canara Bank, Indian Overseas Bank (Indian Overseas) 53 of Bank), 43 of Central Bank of India, 5 of Indian Bank and 5 each of Bank of Maharashtra and Punjab & Sindh Bank. Branch closed. It has not been clarified how many branches of these banks were closed forever and how many branches were merged with other branches during the reporting period.
These two banks did not branch off
The Reserve Bank said under RTI that no branches of Bank of India and UCO Bank were closed in the financial year 2020-21, which ended on 31 March. In the reply given under RTI, no reason has been given for the closure of the branches of the 10 public sector banks or merging them with other branches. But the rationalization of the number of branches is considered to be the biggest reason after the implementation of the Mahavilaya scheme of public sector banks from April 1, 2020.
4 big banks merged to make 10 state-owned banks
Explain that in the last financial year, the government had merged 10 public banks and converted them into 4 big banks. After this, now the number of public sector banks has come down to 12. From April 1, 2020, Oriental Bank of Commerce and United Bank of India (United Bank of India) under Punjab National Bank (PNB), Syndicate Bank to Canara Bank, Andhra Bank And Corporation Bank was merged with Union Bank of India and Allahabad Bank (Allahabad Bank) was merged with Indian Bank.
There has been a huge reduction in new recruits in public sector banks in three years
Meanwhile, All India Bank Employees Union (AIBEA) General Secretary CH Venkatachalam said that the phenomenon of public sector branches is not in the interest of India’s banking industry as well as the domestic economy and in view of the large population the expansion of bank branches to the country needed. Venkatachalam said, due to the decrease in branches of public sector banks, there is a continuous cut in new jobs in the banking industry due to which many young people are disappointed. In the last three years, there has been a huge reduction in new recruits in public sector banks.
The need for strong public sector banks
On the other hand, economist Jayantilal Bhandari justifies the government’s move to merge public sector banks. He said, to give a boost to the economy of the country, we need strong public sector banks of small size rather than weak public sector banks.
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