New plan for privatization of banks under preparation by government

Report by Kamgar Ekta Committee (KEC) correspondent

It is learnt that new plans for privatization of public sector banks (PSBs) are under preparation by the government. A new panel with representatives from the Finance Ministry, NITI Aayog and the Reserve Bank of India is being considered to prepare a new list of PSBs for privatization. According to the report, the panel can also decide how much stake the government will reduce in banks.

Earlier NITI Aayog had recommended privatization of two public sector banks to the Finance Ministry. These two banks are reported to be Central Bank of India and Indian Overseas Bank. The privatization of two banks was discussed by Finance Minister in the budget of 2021-22. Along with this, privatization of IDBI Bank and a general insurance company was also announced. but their privatization could not be taken up due to the strong opposition of employees of PSBs and insurance companies.

Before the proposed privatization announcements, the government merged a total of 10 public sector banks from 1 April 2020. This has brought down the number of PSBs to 12 from 27 in 2017.

 

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