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RELEVANCE OF BANK UNIONS TODAY AIBEA celebrated its Platinum Jubilee, having completed 75 years of existence, on 20 th April 2021, with full page advertisements in leading newspapers. Rightly so. It is the proud parent to many of the bank unions that commenced their journey after independence at different points of time and which are fighting under the banner of United Forum of Bank Unions (UFBU) now. All the unions under UFBU, namely AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF, INBOC, NOBW and NOBO can cherish their achievements, particularly in the following areas:   1.      Ensuring Job Security to all employees recruited in the 1960s and 70s and recruitment based on selection through recruitment boards, employment exchanges and other proper channels. 2.      Industry-level Bipartite Settlement, ever since 1966, covering all Public Sector Banks (PSBs), majority of old generation private sector banks and a few foreign banks as well. 3...

Transfer of Bad Loans to ARC I.                   What is the Proposal? When Hon'ble Finance Minister Smt. Nirmala Seetharaman (FM) announced in her budget speech that a new Asset Reconstruction Company (ARC) and Asset Management Company (AMC) will take over the existing stressed assets of Public Sector Banks (PSBs), everyone, including me, heaved a sigh of relief, as the PSBs will be able to concentrate on their credit portfolio, which paves way for the growth of the economy as well. After reading the statements of FM, Banking & Finance Secretary, (full details of the reports appeared in the newspapers given in annexure), my understanding is as under: 1.      The assets that will be transferred might have been stressed in the books of the banks for a long time. Majority of them may relate to stalled infrastructure projects also. (According to the Banking and Financial Secretary ...