30 May , 2022 By : Debdeep Gupta
Advance action is underway for the privatization of two public sector banks in pursuance of the announcement made by finance minister Nirmala Sitharaman, Department of Financial Services secretary Sanjay Malhotra said on Monday.
In the Union Budget for 2021-22, the government announced its intent to take up the privatization of two PSBs (Public Sector Banks) in the year and approved a policy of strategic disinvestment of public sector enterprises.
"In so far as banking privatization is concerned, there is already a statement on the floor of the house by the finance minister for making enabling provision. Advance action on this is underway,” he said during the curtain raiser event 'Iconic Week of the Finance Ministry’ to be held between June 6 and 12.
In the Union Budget for the financial year 2021-22, the government had announced its intent to take up privatization of two PSBs in the year and approval of a policy of strategic disinvestment of public sector enterprises, Sitharaman had said in Parliament.
Government think-tank NITI Aayog has already suggested two banks and one insurance company to the core group of secretaries on disinvestment for privatization.
According to sources, the Central Bank of India and the Indian Overseas Bank are likely candidates for privatization.
As per the process, the core group of secretaries, headed by the Cabinet secretary, will send its recommendation to Alternative Mechanism (AM) for its approval and eventually to the Cabinet headed by the prime minister for the final nod.
The members of the core group of secretaries include the economic affairs secretary, revenue secretary, expenditure secretary, corporate affairs secretary, legal affairs secretary, Department of Public Enterprise secretary, Department of Investment and Public Asset Management (DIPAM) secretary, and an administrative department secretary.
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