In 1969 Government of India Nationalized 14 Banks and in 1975 another 5 Banks in order to make the Banking easily accessible to common man especially in rural sector. At the time of nationalisation it was said that only the Banking Business was nationalized and not the Banks and as such the Banks could retain their individual identity. In 1980 in the name of economic reforms there was a move to amalgamate the Nationalized the Banks and to have only two or three Banks to take care of the Banking Business. However the move was opposed vigorously by the Unions and the then Finance Minister assured that there was no such move. Again in 2008 there were moves to merge some "weak" Banks with some 'strong Banks'; and this move has also been kept in cold storage for the reasons known to authorities only.
Whether the purpose of Nationalization has been fulfilled or not is a question of dispute and fit for debate. The Government which justified the Nationalization saying that the profits of Banks were going to few business houses only . and henceforth the Banks' profit would be transferred to Government's coffer. Now the technological advent in the Banking Industry has changed the Banking scenario and the Government is reversing its earlier stand on Nationalization as far as the earnings are concerned. The RBI introducing a new scheme in which the private companies having Net Worth of Rs.100/- Crores and above would be allowed to open ATMs in Type III to Type VI areas. The ATMS already opened by the existing Commercial Banks including Nationalized Banks are mainly in Type I and Type II Centres. The ATMs have not been provided in Type III to VI Centres. According to RBI, by allowing the private companies to open ATMs in these areas the people of smaller towns would be benefited. The Banking transactions would be transferred to the private companies by allowing them to open ATMS. The name given to the Private Companies' ATMs is White Label ATMs)(WLA).The Private players would provide all Banking services to the customers of Banks in India.
In the First year the Private players are supposed to open minimum of 1000 WLAs and in the II Year double that of I year WLAs and in the Third Year Triple that of II Year WLAs.The point here is that while the Banking Business was transferred from Private hands to Government in 1969, now it is being transferred to Private Hands back in a phased manner. In opening the WLAs FDI is also allowed. This scheme is going to be materialised in few months' time. What the Employees'Unions and Officers' Associations are going to do in safeguarding the Banking Industry going to Privte Hands back? What is the man power utilisation in the Banking sector ? Whether there will be recruitment in the Banks?
