Mangalore:  Banking activities in Dakshina Kannada and Udupi districts were paralyzed on August 22, Wednesday, when employees of various public sector banks boycotted work and staged a protest near the State Bank in Mangalore in response to a call for a nationwide two day strike by the United Forum of Bank Unions (UFBU). The strike is in protest against the government’s move to amend the banking laws bill, presently pending before parliament and scheduled for discussions on August 23 and 24. The bank strike affected public to a great extent and people were seen queuing up before ATMs to withdraw cash.

The banking law bill proposes to amend the Banking Regulation Act, 1949, and Banking Companies’ Acquisition and Transfer of Undertakings Act. The proposals aim at merger of banks, allowing more private and foreign capital, unrestricted voting rights, decision to grant licenses to corporate houses to start new banks.

However, the Forum fears that the proposed measures may result in the closure of rural bank branches and lead to opening of ultra-small branches, thereby privatizing rural banking operations through contractual business.

The agitators also wanted the rejection of the recommendations of the Khandelwal Committee.

In Udupi: In Udupi too, bank employees protested near the Syndicate Tower near Catholic Centre and shouted slogans against the Union Government.