Bank Privatisation: Sources said that work is going on in this context. In this case, one to two meetings have been called by NITI Aayog.
Several aspects need to be considered before coming to a conclusion.
The NITI Aayog, in consultation with the Finance Ministry, has started finalizing the names of the two public sector banks that are to be privatized during the current financial year. This step will be taken as part of the government’s disinvestment process. The commission has been given the responsibility of selecting two public sector banks and one general insurance company for privatization in the financial year 2021-22. It has been announced in the budget presented in February.
Sources said that work is going on in this context. In this case, one to two meetings have been called by NITI Aayog. He said that several aspects need to be considered before reaching a conclusion. This includes human resource management, financial health, etc. After the recommendation of NITI Aayog, the main group of secretaries (core group) formed on disinvestment headed by the Cabinet Secretary will be considered. Other members of this high-level group are Secretary of Economic Affairs, Revenue Secretary, Expenditure Secretary, Corporate Affairs Affairs Secretary, Law Secretary, Secretary of Department of Public Enterprises, Secretary of Department of Investment and Public Asset Management (Deepam) and Secretary of Administrative Department. .
After approval from the core group of secretaries, the final list of names will go to the alternative arrangement for approval and finally it will go to the cabinet meeting to be chaired by the Prime Minister. After the approval of the Cabinet, changes will be made at the regulatory level so that the path of privatization is facilitated. Last month, Finance Minister Nirmala Sitharaman had said, “The interests of the employees of the banks that will be privatized will be fully taken care of.” Everything including his salary or scale or pension will be taken into consideration.
The government has set a target of raising Rs 1.75 lakh crore from disinvestment in public sector companies and financial institutions in the current financial year. This includes privatizing two public sector banks and one general insurance company.
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