Bank Privatization Latest News: The Central Government of India has recently taken significant strides towards the privatization of multiple banks and companies.
The process is currently underway at a rapid pace. However, there has been opposition from government employees regarding this development.
Except SBI, All Government Banks May Become Private
Two prominent economists in the country have suggested that all government-owned banks, except for the State Bank of India (SBI), should be privatized. However, the NITI Aayog has stated that six government banks will not be privatized.
NITI Aayog Released The List
The NITI Aayog has released a list indicating that Punjab National Bank, Union Bank, Canara Bank, SBI, Bank of Baroda, and Indian Bank will not be privatized. These six banks have been exempted from the privatization process. Government officials have mentioned that all banks that were involved in the government bank consolidation will remain unaffected by privatization.
Bank Mergers Occurred in August 2019
It is important to note that in August 2019, the government merged four out of ten banks, resulting in the reduction of public sector banks from 27 to 12. Currently, there are no plans for privatizing these banks. The Finance Ministry has expressed its opinion that these banks should remain out of the privatization process.
Last year, during the budget announcement, the Finance Minister revealed plans to privatize IDBI Bank. The government intends to sell its stake in this bank, and progress has been made in this regard. Despite ongoing protests, the government has firmly stated its stance on privatization. Additionally, the Finance Minister has mentioned that the bank will be sold to an insurance company.