Banking Services made Public Utility Services
The Government of India has declared banking industry as public utility service till October 21. The order has been issued under provisions of Industrial Disputes Act.
The banking services have been brought under the Industrial Disputed Act in order to prevent strikes by the employees of banking sector. The order has been passed by the labour ministry.
Industrial Disputes Act
The Industrial Disputes act, 1947 regulates Indian labour laws. The main objective of the act is to secure harmony and peace in the work culture of Indian Industries. The act applies only to organized sector.
Path of the order
The order was initiated by Ministry of Finance and has then gone to Reserve Bank of India for clarification. Finally, the order was passed and implemented by the Ministry of Labour.
Reasons for the order
There are several decisions of the government that the bank unions do not agree. For instance, several bank unions protested against the bank mergers. The unions did not agree to the merger as they believed that consolidation of banks will lead to closing down of branches.
Public Utility Services
The Public Utility Services are those services that operate as public service corporation. They provide essential services such as telephones, electricity, natural gas, postal services and water.
Category: Economy & Banking Current Affairs