Federal government will present a bill in Parliament to privatise 2 public sector banksGovernment will cut down its stake holding in public sector banks from 51 per cent to 26 per cent, a move which will assist generate greater institutional and public investments in these banks.To allow this, the federal government will present the Banking Laws (Change) Costs 2021 in the forthcoming Winter season session of Parliament, which starts from November 29.
It prepares to privatise two public sector banks through the proposed legislation.According to the function of the bill, in order to privatise 2 public sector banks, modifications require to be made in Banking Business (Acquisition and Transfer of Endeavors) Acts, 1970 and 1980 along with incidental amendments are required to be made in the Banking Guideline Act, 1949.
The bill is noted for introduction, consideration as well as passing during the forthcoming Parliament session.Sources stated that the move will likewise help in better realisation of worth from the government stake sale.The choice aims to assist federal government regulated banks to raise capital from the market and decrease their reliance on the public exchequer for capital.
It will enable the federal government to utilize this money for development programs, sources notified further, apart from assisting in satisfying the disinvestment target.A scheme for privatisation of public sectors banks in assessment with Reserve Bank of India (RBI) is also being planned, sources added.The federal government is also intending to make the boards of public sector banks more expert by bringing in higher expertise at the managerial level, with much better remuneration and longer tenures.Finance minister Nirmala Sitharaman while presenting the Union Budget for 2021-22 22 had revealed the privatisation of 2 public sector banks as part of the federal government's disinvestment drive to gather Rs 1.75 lakh crore in the present fiscal.