Bank Privatisation News: Whenever there is a discussion about the privatization of banks, the question that arises is what will happen to lakhs of employees and crores of customers of the bank! The government has made a lot clear about this.
Bank Privatization Latest News: It has been decided to privatize two public sector banks and one insurance company in the country. Central government think-tank NITI Aayog has submitted the names of two public sector banks to be privatized to the Core Committee of Secretaries on Disinvestment. Along with this, the name of a public sector insurance company is also included in this list of NITI Aayog.
According to the announcement made in the budget 2021-22, the commission has selected two public sector banks and one general insurance company. All three are to be privatized in this financial year, which is called disinvestment in departmental language. This means that out of these, the government withdraws its shares / its capital / stake and the government gets a private stake in place of it. Let us tell you that in the budget presented in February, Union Finance Minister Nirmala Sitharaman had talked about privatization of two public sector banks and one insurance company.
Now what will happen next?
According to the PTI report, a senior official said that as soon as the Core Committee of Secretaries headed by the Cabinet Secretary agrees on these three names, these names will be sent to the Alternative Mechanism for approval. After this, finally the cabinet headed by PM Modi will give the final approval to these names. After the approval of the cabinet, changes will be introduced on the regulatory side to aid the privatization process.
Which banks are to be privatized, how long will it take?
The names of the banks whose names have been submitted to the core committee by NITI Aayog, their names have not been disclosed. According to the reports, the names of Indian Overseas Bank, Bank of India, Bank of Maharashtra and Central Bank are discussed in the list of privatization.
According to media reports, the possibility of privatization of Bank of Maharashtra and Indian Overseas Bank (IOB) is high. Although the name has not been revealed officially. It is being told that the process of disinvestment may take 5-6 months to start.
Who are the people on the core committee?
The core group committee to which the commission has named is: Secretary of Economic Affairs, Secretary of Corporate Affairs, Secretary of Legal Affairs, Secretary of Revenue, Secretary of Expenditure, Secretary of Department of Public Enterprises, Department of Investment and Public Asset Management (DIPAM). The Secretary and the Secretary of the Administrative Department are also involved.
What will happen to bankers and customers?
Whenever there is a discussion about the privatization of banks, the question that arises is what will happen to lakhs of bank employees and crores of customers! It has been clarified earlier that customers will continue to get services as before, only formal changes will be made. At the same time, no sword will hang on the job of bank workers.
According to a report by ANI, Finance Minister Nirmala Sitharaman had earlier on March 16 assured that the interests of all the employees of the banks which are to be privatized will be taken care of. From their salary to pension… all facilities will be taken care of.
Explain that the central 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. Privatization of two public sector banks and one general insurance company is also part of this goal of the government.