The State Bank of India Staff Union has opposed the introduction of ‘business correspondents' system in the banking sector to reach people in the villages.

At the general body meeting of the SBI Staff Mutually Aided Cooperative Credit Society here on Sunday, SBI Staff Union Hyderabad Circle general secretary M.V. Murali said the Reserve Bank of India had permitted the banks to appoint business correspondents in the villages.

Opposing these appointments, he wanted to know who would hold responsibility if any business correspondent defaulted or mishandled the transactions.

Credibility of the banks would be at stake if these correspondents indulged in any corruption, he said and added that the system was like the money lender system, which would encourage the lender to exploit people.


Cautioning the bank staff against introduction of more such reforms in the banking sector, he said the government was trying to open up the banking sector to the private individuals or business houses.

Handing over the banks to the industrialists or business houses would again lead to denationalisation of banks, he opined demanding immediate rejection by the bank staff.The general secretary congratulated members of the staff cooperative credit societies of Vijayawada, Machilipatnam, Eluru, Gudivada, and Guntur for successfully merging them and forming SBI Staff Mutually Aided Cooperative Credit Society.


Members also felicitated staff union president P. Nanda Kishore, who was scheduled to retire next year.

SBI Staff Mutually Aided Cooperative Credit Society president S Srinivasa Sastry was in the chair. SBI assistant general managers, K.V. Prasad, K Raghuram, and M Sivaji, senior office-bearers of the union and board of directors of society were among those who spoke at the meeting.

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