Nirmala Sitharaman has said that no choice has been taken to privatise public sector banksNew Delhi: Financing Minister Nirmala Sitharaman told Parliament on Tuesday that the union cabinet has not taken any decision on the proposed privatisation of two public sector banks (PSBs).
She had revealed the proposal of privatising 2 PSBs throughout her budget plan speech for 2021-22.
In a written action to a question in Rajya Sabha on privatisation of two PSBs, the financing minister stated, Factor to consider of various issues associated with disinvestment is entrusted to the Cabinet Committee designated for this purpose.
Decision by the Cabinet Committee has not been taken in this regard.
The Banking Laws (Modification) Expense 2021, which entails privatisation of public sector banks, was noted for introduction and passing in the ongoing Winter season session of Parliament, however with the session ending tomorrow (December 22), the relocation is all set to be delayed.On November 16, TheIndianSubcontinent had solely reported that the government might not bring the Banking Laws (Change) Expense 2021 throughout the continuous Winter season session of Parliament, as it plans to have a relook at some essential elements connected to the whole exercise prior to going on with the move.(Also Read: Expense To Privatise 2 State-Owned Banks Unlikely In This Session)Sources familiar with the development had indicated that the current market circumstance is not being viewed as favorable for bringing the legislation and conversations are most likely to be held with the Reserve Bank of India (RBI) prior to a final decision is taken on it.The economic effect of Coronavirus pandemic and the rising hazard of the Omicron variation are also other important factors which are found out to have affected federal government's thinking.Also, while the preliminary thought within the federal government was to sell two PSBs to private entities by divesting its entire stakes in them, there is a probability that federal government might like to keep 26 percent share apiece in these banks with itself and sell the remaining share to various entities, sources in the know had explained.