Bank Privatization: NITI Aayog and RBI will now collaborate to create a fresh list on bank privatization

 Bank Privatization: NITI Aayog and RBI will now collaborate to create a fresh list on bank privatization

Bank Privatization: NITI Aayog and RBI will now collaborate to create a fresh list on bank privatization

Bank Privatization: There has been a recent update on the sale of state-owned banks. Presently, further preparations are being made by the government for the sale of state-owned banks. For this, the government is thinking of assembling a panel. The task of compiling the list of banks has been given to NITI Aayog and RBI by the government.

Public sector banks have performed better and given fewer problematic loans overall. Under such circumstances, the topic of many bank privatization is being discussed once more. It seems that there is still a problem with the privatization of public sector banks. The Reserve Bank of India and NITI Aayog have now been requested by the Finance Ministry to create a fresh list. Finance Minister Nirmala Sitharaman discussed privatization in the 2021–2022 budget. Let us inform you that the Central Government has recently made significant adjustments to a number of public sector banks. The Central Government has cut the number of public sector banks from 27 to 12 in the previous three years.

There will be a new list produced.

A new panel including officials from the Reserve Bank of India, NITI Aayog, and the Finance Ministry is reportedly being explored to create a fresh list of potential privatization candidates, according to a Live Mint article. Two public sector banks should be privatized, according to NITI Aayog, which has also presented its recommendations to the Finance Ministry. Indian Overseas Bank and the Central Bank of India are two of them.

The article further said that Nirmala Sitharaman, the finance minister, spoke about these two banks during the 2021–2022 budgetary discussion. In addition, the announcement was made about the privatization of IDBI Bank and a general insurance firm. However, for various reasons, it was discontinued; now, a resumption of the exercise is anticipated for 2024.

Think about creating a panel.

The formation of a commission by the federal government to choose medium-sized and small banks for privatization is being considered. The article claims that the panel has the authority to determine the amount of the government's bank share that would be reduced. Additionally, a choice may be made about the weight assigned to banks with stronger financial standards and a decrease in problematic loans.

Let us inform you that weak banks have merged with larger banks in order to bolster small banks prior to the planned privatization process. Beginning on April 1, 2020, ten public sector banks combined into one.

There are now twelve PSB banks.

State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, Bank of India, Bank of Maharashtra, Central Bank of India, UCO Bank, Indian Bank, Indian Bank, Union Bank of India, and Bank of India are among the twelve private sector banks. International banks are comprised.