Decision to merge nationalised banks violates national law: Civil society seminar told

Prof Jayati Ghosh, Dr Thomas Franco, Sitaram Yechury

By A Representative
Is the Government of India decision to merge 10 nationalised banks without any legal basis? Speaking at a recent seminar organised by the Financial Accountability Network India (FANI), Dr Thomas Franco, former general secretary, All-India Bank Officers’ Confederation, said, “Bank merger is against the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, which stipulates that the consent from board and shareholders is mandatory.”
Several participants in the seminar accused the step as a move to bail out the "struggling corporates", even as pointing out that the Reserve Bank of India (RBI) decision to transfer Rs 1.76 lakh crore to the government as per the recommendations of the Bimal Jalan-led committee would on only "mess up with public finances."
Attended by representatives of civil society organisations, unions, students, teachers and concerned citizens, Sitaram Yechury, general secretary, CPI(M), told the seminar, “The transfer of RBI’s surplus to the government would destabilise RBI, make India vulnerable in an on-going global and domestic recession.” He added, the banks merger was done "at the behest of corporates, who have been demanding this to deal with one bank than the consortium of banks for the loans.”
Jayati Ghosh, professor of economics at the Jawaharlal Nehru University (JNU), asserted, “RBI’s autonomy died in November 2016 when the government declared demonetisation. The present government is the one without any accountability. The economic mess India is in also stems from this.” He added, "RBI’s money will go towards plugging in the holes created by the demonetisation and hastily implemented GST.”
Others who spoke on the occasion included Prof CP Chandrasekhar, professor of economics, JNU; Paranjoy Guha Thakurta, journalist and author; VK Tomar, secretary-general, National Confederation of Officers’ Associations of Central PSUs; and Purushottam Sharma, leader, CPI (ML).

The farmer's burden: How oil, war, and climate are rewriting the price of food

By Vikas Meshram The scorching flames of the Middle East conflict are now slowly reaching the kitchens of ordinary people. The true price of this war is paid in daily markets, vegetable shops, and in the shattered minds of farmers. Expensive crude oil, skyrocketing fertilizer prices, and rising agricultural costs are together creating the conditions for global food inflation — and this crisis is directly tied to what people eat and drink every day.

India's nuclear euphoria: The hard economics policymakers ignore

By Shankar Sharma* There is a sort of newfound euphoria sweeping India with respect to nuclear power — and in particular, Small Modular Reactors (SMRs). In political speeches, policy documents, and newspaper editorials, the word "nuclear" has acquired a fresh, almost romantic glow, as though a technology once synonymous with catastrophe at Chernobyl and Fukushima has been quietly reinvented. To be sure, the challenges of climate change and India's growing electricity demand are real and urgent. But enthusiasm is not a substitute for analysis. A hard look at the global evidence, the domestic cost picture, and the practical hurdles of nuclear deployment raises questions that this national conversation urgently needs to confront.

Beyond the 'silent relocation' narrative in Bangladesh's Chittagong Hill Tracts

By Dr. Mohammad Asaduzzaman* In recent years, a narrative has emerged from the rugged and forested terrain of the Chittagong Hill Tracts (CHT), portraying the region as the site of a “silent relocation” — a mass forced migration of Bangladesh’s non-Muslim ethnic communities into neighboring India and Myanmar.

Counterview

Search This Blog