Except SBI, all government banks will be private! Know latest updates

The government is moving fast regarding privatization in the country. The government is soon going to privatize two public sector banks, the preparation of which is almost complete. Bids have also started for many companies. If sources are to be believed, privatization may start by September this year. On the other hand, government employees are also continuously on strike in protest against this, but in the meantime, two leading economists of the country say that the government should hand over all public sector banks except State Bank of India to private hands.

Amidst the opposition to the privatization of public sector banks in the country, two big economists of the country have said that except the State Bank of India, all public sector banks should be privatized. Former Deputy Chairman of NITI Aayog and Professor Arvind Panagariya of Columbia University and Poonam Gupta, Director General of NCAER and member of the Council to advise the Prime Minister on economic matters, Poonam Gupta has given this big advice to the government.

Panagariya and Gupta, presenting in the India Policy Forum, have said in a policy paper, ‘Privatization of public sector banks is in the interest of all. With most banks going into the private sector, the pressure on the Reserve Bank of India will also increase to streamline the entire process, rules and laws, so that it can yield good results.

SBI kept out

According to the report given by ncaer.org, it has been said in this policy paper that in principle all public sector banks including State Bank of India should be privatized. But in the economic and political structure of India, no government would like that it does not have a government bank. In view of this, the target at present should be to privatize all other banks except SBI. If the environment looks favorable after a few years, then SBI should also be privatized. That is, both the economists are giving their full support for the banks to be private.

What is the government’s plan?

It is worth noting that Finance Minister Nirmala Sitharaman, while presenting the budget for the current financial year, announced the privatization of two public sector banks along with IDBI Bank in FY 2022. Apart from this, NITI Aayog has also shortlisted two PSU banks for privatization. Despite the continuous protests, the government has already clarified its stand regarding privatization. Along with this, the Finance Minister had also said that an insurance company would be sold in the current financial year.

Now the question is, which can be the two banks which will be made private first. According to the information given by the sources, Central Bank of India and Indian Overseas Bank were selected as possible candidates for privatization. That is, Indian Overseas Bank and Central Bank of India are the two banks which can be privatized first.

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