LIC IPO: Opposed to opening of bank branch on Sunday, bank union objected to RBI’s decision

LIC IPO: Opposition to open bank branch on Sunday

The RBI on Wednesday announced that bank branches for LIC’s IPO with ESBA (Application Supported Through Blocked Amount) facility will remain open on Sunday as well, with unions protesting the decision.

LIC’s IPO ,LIC IPOThe bank union has opposed the opening of a bank branch on Sunday to help the investors in the application. The Bank Officers’ Union has objected to the decision and termed it as a step to increase the expenditure unnecessarily. reserve Bank of India (RBI) had informed on Wednesday that bank branches with ESBA (Application Supported through Blocked Amount in the Account) facility for Initial Public Offer (IPO) of LIC (ASBA bank branch) will remain open on Sundays as well. According to the Reserve Bank, a request was received from the government in this regard, after which the decision has been taken. Investors can place bids in LIC’s IPO on both Saturday and Sunday.

What is the objection of bank union

All India Bank Officers’ Confederation issued a statement saying that in view of the increasing use of online applications for IPO by investors, it is anticipated that keeping the branch open on Sunday will not be of any use. And no investor will apply in physical format. In such a situation, this step is not right and banks cannot bear the high expenditure on such steps. According to AIBOC, opening a bank branch on a holiday with this move can put a burden of more than Rs 100 crore on banks. The union said that in view of this, the Reserve Bank should review the decision. And take back this decision.

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ASBA branch will open on Sunday

The Reserve Bank of India (RBI) on Wednesday announced that bank branches for LIC’s Initial Public Offering (IPO) with ESBA (Application Supported by Amount Blocked in the Account) facility will remain open on Sunday as well. RBI had informed in a statement that the government has requested to open all branches of Esba on Sunday i.e. May 8 for processing LIC’s IPO applications. The central bank said, after reviewing this request, it has been decided to open the bank branches with the facility of Esba on Sunday (May 8) also. Generally, investors apply for a public issue through Esba. LIC’s IPO will close on May 9 and bids for it can be placed even on a holiday. The government aims to raise Rs 21,000 crore by selling 3.5 per cent of its shares.