Home / Business and Economy / RBI Urged to Halt SBI's Kolkata Operations Closure
RBI Urged to Halt SBI's Kolkata Operations Closure
17 Jan
Summary
- SBI issues one-month notice to vacate Kolkata premises.
- Civil society forum seeks RBI intervention against closure.
- Kolkata's Global Markets Unit supported overseas operations.
The State Bank of India (SBI) has initiated the process to close its Global Markets Unit (GMU) in Kolkata by issuing a one-month notice to vacate its premises in the Jeevan Sudha Building. This move aligns with SBI's strategic plan to consolidate its treasury and foreign exchange operations in Mumbai, impacting operations housed from the 11th to 16th floors of the central Kolkata building.
A civil society platform, the Bank Bachao Desh Bachao Manch (BBDBM), has formally requested the Reserve Bank of India (RBI) to intervene and prevent the closure. The BBDBM argues that any cessation of the GMU's operations without explicit regulatory approval would undermine the RBI's statutory authority and the established regulatory framework. The unit, established in 2015, has played a significant role in supporting international financial centers.
BBDBM asserts that the GMU Kolkata has been a vital contributor to West Bengal's economic landscape, fostering international banking activities and generating employment. The potential closure raises concerns about the loss of specialized banking functions and could diminish Kolkata's standing as a financial hub for eastern and northeastern India.
