All India Bank Officers’ Confederation (AIBOC) has objected to the decision of the Reserve Bank of India (RBI) to open branches designated by the ASBA on Sunday (May 8) to tender the tender offer of Life Insurance Corporation ( LIC). makes no sense since most applications are submitted digitally.
Most branches are ASBA (Application Supported by Blocked Amount) with fast digitization.
“Given the extensive use of online IPO among investors, we believe that most branches will not receive even any physical application on Sunday. In such circumstances, the decision to keep all bank branches open will is per se farce and banks cannot afford to bear such gargantuan expenditure,” AIBOC said in a statement.
This has, of course, sparked fear and dismay among the banks’ officer fraternity, who are actually the drivers of the industry, the AIBOC said.
While the DIPAM was too eager to ask affiliates to work on vacation, the RBI said, the RBI has not assessed whether all branches should remain open.
The decision will not deliver but will impose a huge financial burden estimated to be more than Rs 100 crore due to workers compensation and other operational costs of keeping the branches open during a holiday, it said.
Taking all these aspects into account, the RBI should reconsider its decision and revoke its order of opening branches on Sunday, the union said.
The RBI on Wednesday instructed banks that all branches designated by the ASBA remain open to the public on Sunday to facilitate the processing of applications for LIC’s IPO.
The IPO of the state-owned company LIC, the largest ever bid in the country, closes on May 9. Bidding will also be held on May 7 (Saturday) and May 8 (Sunday).
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