PSB Privatisation Bill - Government Will Exit From Public Sector Bank Completely & fully Privatizing Public Sector Banks with the amendment in existing law that will allow the Central Government a complete exit from banks and fully privatizing PSBs.
In the upcoming Monsoon Session of Parliament, the Centre will likely introduce a bill to make amendments in order to facilitate the privatisation of public sector banks.
This amendment will allow the Central Government a total exit from banks, fully privatizing Public Sector Banks.
The Economic Times reported, quoting an official aware of the developments.
As per the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, the central government is required to hold at least a 51 per cent stake in the public sector banks. Earlier, the Centre was to retain at least a 26 per cent stake in PSBs during privatisation, and this would be brought down gradually.
While the dates of the Monsoon Session have not been announced yet, the Centre had listed the Banking Laws Amendment Bill, 2021, in the winter session of Parliament last year. However, the bill was not introduced in the session.
The bill had proposed "amendments in Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980 and incidental amendments to Banking Regulation Act, 1949".
Meanwhile, the bankers union has recently postponed their agitation against the bill on assurance of the government.
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Privatization