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Demonetisation has brought banking operations to standstill: AIBOC Official

AIBOC senior vice-president and SBI officer Thomas Franco compares the move with the bank nationalisation in 1969, after which Morarji Desai resigned from the position of Deputy Prime Minister

Senior vice-president of the All-India Bank Officers’ Confederation (AIBOC) and an officer with the SBI Thomas Franco has said all banking operations, other than dispensing and collecting cash, have come to a standstill after the demontisation move.

“We are all doing a no-revenue-work. Lending, which is our main business, is just not happening,” he said in an interview given to Frontline.

When asked about the extent of cooperation between banks, I-T Department and law enforcement agencies, he said the software in the system provided a report if multiple transactions above Rs. 2.5 lakh were made. But there is a loophole that it works only within a single bank. There is no mechanism to track such transactions in other banks.

Franco didn’t like to talk about the move to eliminate black money. But he was sure that the decision of demonetisation was taken without proper preparation. He compared it with the bank nationalisation in 1969, after which Morarji Desai resigned from the position of Deputy Prime Minister.

He also added that the ‘Emergency’ move by Indira Gandhi was well prepared with political and administrative acumen, but here in this case, some basics were forgotten.

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