Centre more likely to carry amendments to 2 legislations to facilitate privatisation of PSU banks

Nirmala Sitharaman whereas presenting Finances 2021-22 earlier this month had introduced the privatisation of Public Sector Banks as a part of disinvestment drive to garner Rs 1.75 lakh crore

Centre likely to bring amendments to two legislations to facilitate privatisation of PSU banks

Representational Picture. Reuters

New Delhi: To facilitate the privatisation of public sector banks, the federal government is more likely to carry amendments to 2 legislations later this yr.

Amendments can be required within the Banking Corporations (Acquisition and Switch of Undertakings) Act, 1970 and the Banking Corporations (Acquisition and Switch of Undertakings) Act, 1980 for privatisation, sources mentioned.

These Acts led to the nationalisation of banks in two phases and provisions of those legal guidelines must be modified for the privatisation of banks, they mentioned.

As the federal government has already introduced the listing of legislative enterprise for the Finances session, it’s anticipated that these amendments could also be launched within the Monsoon session or later through the yr, sources added.

The continuing Finances session is scheduled to take up as many as 38 Payments together with the Finance Invoice 2021, Supplementary Calls for for Grants for 2020-21 and associated Appropriation Invoice, Nationwide Financial institution for Financing Infrastructure and Improvement (NaBFID) Invoice, 2021, and Cryptocurrency and Regulation of Official Digital Foreign money Invoice, 2021.

Finance Minister Nirmala Sitharaman whereas presenting Finances 2021-22 earlier this month had introduced the privatisation of Public Sector Banks (PSBs) as a part of disinvestment drive to garner Rs 1.75 lakh crore.

“Aside from IDBI Financial institution, we suggest to take up the privatization of two Public Sector Banks and one Normal Insurance coverage firm within the yr 2021-22,” she had mentioned.

Later in one of many submit Finances interactions, the Finance Minister had mentioned the federal government will work with the Reserve Financial institution for the execution of the financial institution privatisation plan introduced within the Union Finances 2021-22.

“The main points are being labored out. I’ve made the announcement however we’re working along with the RBI,” she had mentioned when requested in regards to the proposal.

The federal government final yr consolidated 10 public sector banks into 4 and consequently, the full variety of PSBs got here right down to 12 from 27 in March 2017.

As per the amalgamation plan, United Financial institution of India and Oriental Financial institution of Commerce had been merged with Punjab Nationwide Financial institution, making the proposed entity the second-largest PSB.

Syndicate Financial institution was merged with Canara Financial institution, whereas Allahabad Financial institution was subsumed in Indian Financial institution. Andhra Financial institution and Company Financial institution had been amalgamated with Union Financial institution of India.

In a primary three-way merger, Financial institution of Baroda merged Vijaya Financial institution and Dena Financial institution with itself in 2019. SBI had merged 5 of its affiliate banks – State Financial institution of Patiala, State Financial institution of Bikaner and Jaipur, State Financial institution of Mysore, State Financial institution of Travancore and State Financial institution of Hyderabad- and in addition Bharatiya Mahila Financial institution efficient April 2017.

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