In the banking sector, the government can quickly move forward on the path of privatization. NITI Aayog has also prepared the blueprint for privatization of banks. The commission has suggested the central government to keep control over 4 public sector banks. These banks include State Bank of India, Punjab National Bank, Bank of Baroda and Canara Bank. Apart from this, the Commission has advised to privatize three small public sector banks Punjab and Sindh Bank, Bank of Maharashtra and UCO Bank on priority basis. Other government banks (Bank of India, Union Bank, Indian Overseas Bank, Central Bank and Indian Bank) will either merge with the 4 remaining banks or reduce their stake. The government can limit its stake in these banks to 26%.
Actually, in the last few days, the central government had fixed strategic and non-strategic sectors for privatization. According to this, banking is also in the strategic sector and only 4 government institutions can be approved in it. In such a situation, it is clear that the government will keep 4 banks with itself. This proposal can be presented before the cabinet soon. Describing the privatization of banks as necessary, a government source said that after the Moratorium implemented till 31 August and then restructuring of loans for 2 years, there is a need to invest large amounts of capital in banks.
The government source said that the privatization of state-run banks with weak economic condition will provide relief to the government as it has to invest capital in those banks year after year. However, the government is preparing a plan to move slowly on privatization so that maximum amount can be obtained. From 2015 to 2020, the central government had invested Rs 3.2 lakh crore in state-run banks in bad loans. Even after this, the market capitalization of these banks has decreased rapidly. This crisis has deepened in the Corona era.
Law made by Indira government in 1970 will be repealed: For the privatization of banks, Modi government can repeal the Act of Banking Companies in 1970 for the purpose of nationalization of banks. It will not be difficult for the government to do so as it is able to pass the bill from both houses of Parliament. Indira Gandhi nationalized 14 private banks in 1970 and once again in 1980, 6 private banks became part of the government sector
Promotion of privatization in other areas as well: Apart from banks, Modi government is also promoting privatization in other sectors. Apart from privatization of oil marketing company Bharat Petroleum Corporation Limited, the government has also prepared to approve private companies in the field of coal mining. Talking about banking sector, due to mergers and privatizations in the last 3 years, the number of state-run banks has been reduced from 27 to 12, which is now set to be limited to 4
Source link https://www.informalnewz.com/big-news-only-4-banks-including-sbi-will-remain-government-modi-government-will-increase-on-the-path-of-privatization-of-these-banks/?fbclid=IwAR0iFl8y7ZVwAlUnt03BfBhjMKGdcxZjnPR39jZPha6FCda-OHTW7fmgjuo
6 comments:
Good eve sir, what abt Regional banks sir..
Instead of privatisation Govt should fix accountability of the concerned management for poor performance of individual banks. The public faith lies with the govt Banks as they feel that their money is safest with the govt banks. If privatised, how govt schemes will be implemented, the dream of social and mass banking will be defeated. Moreover the wheel of vikas will got punctured.
All drama
Ye govt. Desh ki sabhi psu ko bech rahi hai ye galat hai. Aaap kuch bana nahi sakte ho to aapko enhe bechne ka adhikar nahi hai ye desh ko sampatti hai.
Govt desh ki psu banks ko privata hato me bach rahi hai jin banks me janta ki gadi kamai rakhi hey yadi govt in banko ko nahi chalana chahati hey to govt ko bhi private kar dena chahiye enko sarkar chlne ka koi adhikar nahi hey
Ye log desh ki sabhi psu ko private hato me bech rahey hai jo desh ki janto ko rojgar dete hai janta se gujarish hey desh hit me eska virodh kare.
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