THIRUVANANTHAPURAM: The Bharatiya Mazdoor Sangh (BMS), the labour wing of the RSS, has come out against the Union Government decision to appoint Standard Chartered bank as fund managers and Reliance Nippon Ltd as portfolio managers of the funds of ESI Corporation.While the objection raised by the BMS is expected to create ripples in the extended Sangh Parivar, the body has pointed out funds to the tune of around ` 35,000 crore are set to be managed by the foreign bank and the private portfolio manager.
BMS national executive member and standing committee member of ESI Corporation V Radhakrishnan has come out strongly against the policies of the Ministry of Labour.In a letter to Union Minister for Labour and Employment Santhosh Gangawar and to the secretary at the ministry, Radhakrishnan has questioned the Union Government over why a foreign bank has been appointed as the custodian of the hard-earned money of workers.
The BMS leader also asked the reason for preferring a foreign bank over nationalised banks, such as the SBI, a move he has said is totally against the national spirit and the interest of workers.The BMS leader told Express, “Foreign banks will repatriate the profits earned by managing these funds at the cost of depriving value capital to the Indian economy. Other statutory organisations, like EPF and PFRDA, have not chosen foreign banks as the custodian of their funds.” He said the current recommendations are against the accepted values and principles of the country for the fund management of labour welfare schemes.
However, a source at ESI told Express, “We have put the money with Standard Chartered as there is a higher interest rate compared to nationalised banks where it is only 4 per cent.”
Even as the BMS has come out against the appointment of Reliance Nippon Life, it has also noted in the pension fund management of National Pension Scheme by PFRDA, only PSU asset management companies like SBI, UTI and LIC are allowed.
Radhakrishnan asked the ministry to ensure the funds of the corporation are not invested in fixed deposits of foreign banks and to invest in Indian banks. The BMS feels the fluctuations in the stock market will affect the security of the ESI money which is totally inadvisable.