Traders come down against bank stir

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Follow us:WhatsappFacebookTwitterTelegram.cls-1{fill:#4d4d4d;}.cls-2{fill:#fff;}Google NewsThe two-day long strike staged by the bank employees came as a double whammy to the business community, who were already facing a slump in sales. The bankers failed to make alternatIVE arrangements to enable the smooth transactions for the business community.As a result, the traders have to pay an interest, to the tune of 13 to 18 per cent, for the overdrafts. Cheque clearances were affected badly, and various companies had to find almost double the working capital.“The banks are denying the traders’ right to deposit their daily collection because of the strike.The traders have to pay the interest for those days when the banks remained closed as part of the strike. Withdrawal of large amounts became impossible and as a result many business deals were lost,” said K N Marzook, chairman, Kerala Chamber of Commerce and Industry (KCCI).The KCCI had written letters to the Reserve Bank of India (RBI) and State Bank of India (SBI) stating these problems, asking them to make alternate arrangements.As of now, a decision is yet to be initiated in this regard. Earlier, the RBI had made a clearance arrangement through a few new generation banks in the event of a strike. But the step was not effective. The striking employees have been found to disrupt the smooth functioning of the alternate arrangements as well.“Earlier, the RBI had taken steps for the speedy clearance of transactions. But since the strike was anall-India one, the system could not come handy,” said K S Raveendran, Special Assistant, Reserve Bank of India.The number of cheques pending clearance increased substantially owing to the two-day bank strike, said C J George, managing director, Geojit BNP Paribas Financial Services Ltd. Financial service companies had to find almost double the working capital, he added.It is estimated that if banks are closed for a day, the drop in sale will be 50 per cent.The two-day long strike almost contributed a 100 per cent loss to the traders’ community.Also, the strike has resulted in people relying on private companies for gold loan needs, where the interest rates are almost thrice as that of the banks.“The interest and surcharges cause a major worry for the traders, particularly in the festival season. In fact, the bank strikes are harmful to the traders’ community,” said Binni Immatty, president, Kerala State Vyapari Vyavasayi Samiti.first published:August 24, 2012, 10:55 ISTlast updated:August 24, 2012, 10:55 IST
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The two-day long strike staged by the bank employees came as a double whammy to the business community, who were already facing a slump in sales. The bankers failed to make alternatIVE arrangements to enable the smooth transactions for the business community.

As a result, the traders have to pay an interest, to the tune of 13 to 18 per cent, for the overdrafts. Cheque clearances were affected badly, and various companies had to find almost double the working capital.

“The banks are denying the traders’ right to deposit their daily collection because of the strike.

The traders have to pay the interest for those days when the banks remained closed as part of the strike. Withdrawal of large amounts became impossible and as a result many business deals were lost,” said K N Marzook, chairman, Kerala Chamber of Commerce and Industry (KCCI).

The KCCI had written letters to the Reserve Bank of India (RBI) and State Bank of India (SBI) stating these problems, asking them to make alternate arrangements.

As of now, a decision is yet to be initiated in this regard. Earlier, the RBI had made a clearance arrangement through a few new generation banks in the event of a strike. But the step was not effective. The striking employees have been found to disrupt the smooth functioning of the alternate arrangements as well.

“Earlier, the RBI had taken steps for the speedy clearance of transactions. But since the strike was an

all-India one, the system could not come handy,” said K S Raveendran, Special Assistant, Reserve Bank of India.

The number of cheques pending clearance increased substantially owing to the two-day bank strike, said C J George, managing director, Geojit BNP Paribas Financial Services Ltd. Financial service companies had to find almost double the working capital, he added.

It is estimated that if banks are closed for a day, the drop in sale will be 50 per cent.

The two-day long strike almost contributed a 100 per cent loss to the traders’ community.

Also, the strike has resulted in people relying on private companies for gold loan needs, where the interest rates are almost thrice as that of the banks.

“The interest and surcharges cause a major worry for the traders, particularly in the festival season. In fact, the bank strikes are harmful to the traders’ community,” said Binni Immatty, president, Kerala State Vyapari Vyavasayi Samiti.