The government has taken the first step to introduce a new bill to amend the banking law

As Congress’s winter session approaches, more and more speculation about the Center’s decisions has surfaced. One of these is a government plan to privatize two central banks. The central government will reportly submit a bill in this regard during the winter session of Parliament, which is scheduled to begin next week. According to reports, the center has already proposed privatization of the Bank of India (IOB) and the Central Bank of India. This is part of the government’s Rs. 1.75 Karol investment withdrawal plan previously announced by the current authorities. fiscal year.

CNBC TV18 said in a report that the first important step in the bank’s amendment is expected to enter the parliamentary winter session, “at least a proposal to submit the bill to parliament.”

This bill is one of 26 bills that the government plans to bring during the winter legislative session of Parliament. According to a report by India Today, the bill “revisions the 1970 and 1980 Banking Companies (Acquisition and Transfer of Business) Act and ancillary Amendments to the Banking Regulation Act of 1949 to the Federal Budget Announcement of 2021. Aiming to carry out in connection. Privatization of two public sector banks. “

Federal Finance Minister Nirmara Sisaraman has announced that two public sector banks will be privatized in the 2021-22 federal budget as part of the Center’s investment withdrawal plan.

“We need a bank that can grow … we need a bank that can meet the country’s ambitious needs,” said Sisaraman, with many thoughts behind the intention to privatize some people. was there. Sector Bank, she added further.

The privatization of the Central Bank of India and the Overseas Banks of India depends on several factors. It is not yet known if the proposal will be referred to the Standing Committee or will pass without such a thing. After that, the government will proceed with the merger.

The exercise of bank privatization will move forward in line with the speed of bank amendments. It also depends on when the government is ready to make a deal. “This privatization is unlikely to happen, at least this fiscal year,” according to a CNBC TV18 report.

According to India Today’s report, which cites sources, the bill is unlikely to mention the name of the bank the government is trying to privatize. The center will instead move legislation in force during the winter session to privatize public sector banks.

According to the’AatmanirbharBharat’Public Sector Enterprise policy, NITI Aayog was entrusted with the task of proposing the name of a strategic sector PSU to integrate, privatize, or make a subsidiary of another PSU.

Shares of the Central Bank of India and the Central Bank of India rose 15 to 20 percent on Wednesday following reports of privatization.

At 9:30 am IST, the Central Bank of India estimated a rise of 22.75 rupees, 2.20 rupees, or 10.71 percent on the Bombay Stock Exchange or BSE. At the same time, Indian Overseas Bank was trading at BSE at Rs 2.30, an increase of 11.59 percent to Rs 22.15.

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The government has taken the first step to introduce a new bill to amend the banking law

Source link The government has taken the first step to introduce a new bill to amend the banking law

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