From our readers: Real aim of bank mergers exposed

To,

The Editor,

Mazdoor Ekta Lehar

I am writing in response to the article `On the Real Aim of Merging and Privatising Banks’ dated 24/7/2020 and published in the online edition of MEL.  The issue of banking is a very important one and is also one on which there is considerable confusion in the public mind.  It is therefore very important that MEL educates the rank and file of the CGPI as well as the working class on this important issue.

The article points out that although the problem of mergers was raised by the Government in the context of “non-performing assets” (NPA) over three years ago the problem of bad loans had become even worse in these years.  Furthermore, there is also a lot of talk of a 5 trillion dollar economy which seems to be going hand in hand with these changes, and privatisation seems to be very much on the cards.

One may recall that it was over 50 years ago that the Indira Gandhi Government carried out nationalization of several private banks at a time when India was still in need, or more precisely Indian capitalists were in the need of rapid credit to accelerate growth and profit. One cannot forget that India is a country where the big capitalists basically run the show and what is often announced as `national interest’ is actually their interest.  And this was indeed the case with the nationalization of banks at that time.  In the decades that have ensured

Indian capitalists have not only completely captured the Indian market but have also become players in the international market.  Even more recently digital payments have begun to play an important role in the banking sector.  The entire aim of banking reforms is for the big capitalists to rake in more profit for themselves, following the US model.

The article explains in great detail the issues involved. I would like to thank you for carrying this article and would also like to exhort the working class to study this issue in great detail so as not to be misled by the bourgeois propaganda in this important issue.

Sincerely,

Narayan

Bangalore

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