India, New Delhi: Foreign branches of public sector banks owned by the Government of India will be closed. It is yet to confirm the news that, if the government will only shut down branches of Punjab National Bank (PNB) working abroad or the branches of all public sector banks will be closed. On the matter, public sector banks 'officials' organization AIBOC has strongly opposed the decision to close branches abroad in view of fraud of Rs 12,700 crore in PNB. The organization has criticized this decision and said that the government is taking this decision without considering it.
All India Bank Officers' Confederation (AIBOC) has criticized this decision of the Finance Ministry and has demanded that all the public sector bank frauds be investigated for more than Rs 50 crore debt. Also criticizing the proposal for the formation of the National Financial Reporting Authority (NFRA) as an independent regulator for the auditing profession and it has been considered unconstitutional. The union said, the most harmful thing in this story is that the order of the Finance Ministry is only applicable to public sector banks and not for private sector banks.
It is beyond our imagination, how the government can reach the conclusion those employees of private sector banks will not cheat. AIBOC in his statement expressed surprise over how the government could discriminate between public sector banks and private banks. According to the union it is not that the default in functioning is only in public sector banks. This type of error is also seen in many private sector banks at the global level and in the country too.