Allow more banks in industrial areas: Noida entrepreneurs association

The Noida entrepreneurs association (NEA) has urged the Noida authority to strengthen banking services in the industrial sector, which is under pressure after demonetisation.

The Noida entrepreneurs association (NEA) has urged the Noida authority to strengthen banking services in the industrial sector, which is under pressure after demonetisation.

In November 2016, following the Central government’s demonetisation announcement, the district administration had arranged camps at construction sites in Greater Noida for workers to open bank accounts. (HT File)

Banks fall under the commercial category, and, without a change in policy, the Noida authority cannot allow setting up bank branches on industrial plots. The industrial unit owners want a change in the policy so that banks can be allowed to provide services to those working in the industrial sector.

The Central government had, on November 8, 2016, announced the demonetised of ₹500 and ₹1,000 currency notes with an aim to promote digital transactions and discourage the use of cash. However, around four lakh workers employed in 8,000 industrial units in Noida are yet to open bank accounts to get their salary through cheques or RTGS (real time gross settlement) fund transfer.

As the Centre has made it mandatory that employers should pay salaries though either bank transfer or cheques, industrial unit owners have been facing a tough time paying to those who do not have bank accounts.

There are 367 bank branches in Gautam Budh Nagar district; however, due to the crowds at banks after the demonetisation announcement, many workers were not able to open bank accounts easily.

“There should be around 100 more bank branches in Noida. We have requested Gautam Budh Nagar district magistrate for allowing more bank branches in the industrial area. We now plan to meet Noida authority’s chief executive officer,” said Vipin Malhan, president of NEA.

According to NEA, private banks have refused to open accounts of workers at zero balance. As a result, labourers are rushing to government banks to open zero balance accounts in order to get their salary.

“The government banks alone cannot handle the pressure as the staff is overburdened,” said AK Singh lead bank manager of Gautam Budh Nagar.

Many workers are also facing problems in opening bank accounts as they do not have proper identity and address proofs of Noida.

“Many officers are being run on industrial plots, which is a non-industrial activity. Then, why can’t the authority allow banks in the areas. The authority should either allot new plots for banks in industrial areas or allow banks on industrial plots as per needs in a particular area,” said Malhan.