Bank Privatisation news: NITI Aayog has been entrusted with the responsibility of selecting the names of two public sector banks and one insurance company for privatization.
The announcement related to privatization was made in the budget for the financial year 2021-22.
Bank Privatisation news: NITI Aayog has submitted to the Core Committee of Secretaries on Disinvestment the names of public sector banks which are to be privatized in the current financial year under the disinvestment process. A senior government official gave this information. NITI Aayog has been entrusted with the responsibility of selecting the names of two public sector banks and one insurance company for privatization. The announcement related to privatization was made in the budget for the financial year 2021-22.
The official said, ‘We have submitted the names of (PSU Banks) to the Core Committee on Disinvestment of Secretaries. Other members of the high level committee include economic affairs secretary, revenue secretary, expenditure secretary, corporate affairs secretary, legal affairs secretary, public undertaking secretary, investment and public asset management department (DIPAM) secretary and administrative department secretary. .
Two banks will be privatized one insurance company
After getting approval from the Core Committee of Secretaries headed by the Cabinet Secretary, the names will first be placed before the Alternative Mechanism (AM) for approval and before the Cabinet headed by the Prime Minister for final approval. After the approval of the cabinet, changes in the regulatory side will be introduced to help in the process of privatization. The government has set a target of raising Rs 1.75 lakh crore in the budget by selling its stake in public sector companies and financial institutions, including two state-owned banks and an insurance company.
Privatization was announced in the budget
Finance Minister Nirmala Sitharaman had recently said, “The interests of the employees of the banks which will be privatized will be fully protected. Whether it is about their salary or pension, everyone will be taken care of.” On the logic behind privatization, he said that there is a need for big banks like State Bank of India in the country.
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