Possible effects on farmers of bank privatization
Bank employees were on strike against bank Privatization on 15 & 16th March. We observed that all are talking about benefits / loss to Government, Corporates & Bank Employees but nobody bothered about effects of bank privatization on Indian farmers to whom public sector banks are providing their services in rural areas.
Let’s Discuss that
We are raising some possible effects of bank privatization on farmers and questions related to banking to farmers. If answer to all these questions is in negative then bank Privatization is not good for farmers.
Let’s start questions and requesting to reply to all as a farmer
· Any private bank manager / officer / employee visited your village?
· Do you have a private bank ATM in your village?
· Whenever you went to the town near your village, did you visit the private bank?
· Suppose your account has been opened in a private bank.
· Will you be able to manage the minimum balance requirements?
· Will private bank offer you Atal Pension Yojana or Jeevan Jyoti Bima Yojana etc.?
· There are private banks in the city near your village, have you applied for a Kisan Credit Card or Tractor Loan in a private bank?
· Private bank gives you the benefit of government sponsor scheme?
· It is difficult for you to pay the nominal fees of public sector banks. Will you be able to pay the high fees of private banks?
Disadvantage of Bank Privatization for farmers
· Rural ATMs will be closed after bank privatization
· Rural branches will be closed permanently after bank privatization
· Private banks will charge more interest on your loan.
· Private banks focus on rich people. Do not give loans to poor people and farmers.
· You will not be able to open a no frill and zero balance account. It will be difficult for poor people to open an account in low balance.
· You have to maintain a higher minimum balance in your account than public sector banks.
· Private banks will not give any subsidy scheme.
· Private banks will not offer any social security scheme Private banks will charge higher service fees.
· Private banks will not offer any government scheme.
· Private banks are still in existence so if public sector banks privatize you will not get any benefit.
· Private banks will charge different types of fees. Even if you repay your loan ahead of time. They will charge a prepayment penalty
These are the possible effects on farmers of bank privatization and some common questions which are arising in mind of farmers, farmer welfare associations and some political parties. Although Political parties in opposition are trying to get benefit over this issue to let government down but as a farmer its serious concern. Government must avoid such step which would be reason of farmer’s downfall and if it’s unavoidable then before move ahead with Privatization procedure Government must take care of such issues and must be initiate a proper and clear guideline to be followed by Banks for the sake of Farmers.