Potential candidates on Bank privatization yet to be chosen: FM

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The assertion comes amid mounting theories that the privatization of two public-sector banks (PSBs), proposed in the 2021-22 Budget, will be pushed to the following financial year.

Bank associations have called for a two-day strike this week to challenge the privatization bid. The public authority plans to present the Banking Laws (Amendment) Bill 2021, in the current parliament winter session to work with the auction.

Answering an inquiry, Sitharaman said: “Thought of different issues identified with disinvestment, which entomb Alia, incorporate the choice of the bank(s) is shared with the Cabinet board assigned for this reason. A choice by the Cabinet panel worried for privatization of PSBs has not been taken in such manner.”

As indicated by sources, Niti Aayog has effectively suggested the auction of Indian Overseas Bank and Central Bank of India to the group of secretaries on disinvestment, which is under the Cabinet secretary.

This group will send its proposal to the alternative mechanism (AM), going by the ministry of finance, for its endorsement. At last, it will be cleared by the Cabinet.

The new bill proposes reforms in Banking Companies (Acquisition and Transfer of Undertakings) Acts 1970 and 1980 and Banking Regulation Act, 1949 with regards to Union Budget declaration 2021 regarding privatization of two public sector banks, as per the rundown of business of legislative for the parliament winter session.

These laws had caused the nationalization of banks, so important changes to these laws must be made ready for privatization.

In the meantime, a few state-run banks — including Canara Bank, Indian Bank, State Bank of India (SBI), Punjab National Bank (PNB), Bank of India, Punjab Sind Bank, Union Bank, Central Bank of India, and Uco Bank, have urged their staff not to participate in the strike this week at the command of bank associations, for the sake of customers.

From December 16 a two-day strike has been called by The United Forum of Bank Unions to challenge the act of privatization of two PSBs. Forum has raised the concern of trepidation of an extreme disturbance in banking administrations the nation over.

Canara Bank has called for a gathering with different associations and other important partners on Tuesday to examine the issue.

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