Bank Privatisation: Disinvestment of Central Bank of India with Overseas Bank decided

Bank Privatisation: Disinvestment of Central Bank of India with Overseas Bank will happen now. Now the names of other banks have been added to the list of disinvestment.

According to a report by CNBC Awaaz, the names of the Central Bank of India and Indian Overseas Bank will also be disinvested in it.

In the first phase of this disinvestment, both these banks, i.e. Overseas Bank and Center Bank of India, will sell their 51 percent stake.

The government has set this disinvestment target at Rs 1.75 lakh crore for the year 2022. The Central Government can bring amendments to the Banking Regulation Act and this Banking Law Act for the privatization of both these public sector banks during the Nash monsoon session.

Highlighted Point to Bank Privatisation-

  • Central Bank of India may be disinvestment with Overseas Bank
  • In the 1st phase, Overseas Bank and Center Bank of India will sell their 51 percent stake
  • The Indian government has the target of collecting Rs 1.75 lakh crore from disinvestment in the year 2021-2022

According to a report, it has been told that the Central Government can also amend the Banking Regulation Act and some other banking laws for disinvestment.

The think tank of this government has recently submitted a report mentioning the names of both these banks to the Core Group of Secretaries on Disinvestment.

Which will be privatized in this financial year. Another member of the core group panel is Secretary, Economic Affairs, Revenue Secretary, Expenditure Secretary, Corporate Affairs Secretary, Public Enterprises Secretary, Investment and Public Asset Management Department, and Secretary Administrative Department.

Once the main group of secretaries, headed by the Cabinet Secretary, approves the names. According to this report, it will go to the alternate mechanism for approval.

Ultimately, it will go to the cabinet headed by the Prime Minister for final approval. In this manner, these banks will get the final seal on disinvestment ( Bank Privatisation ).

There is no loss to any customer in this. With the privatization of these banks, there is no need for all the customers to panic. Because in this, the bank account holders that are going to be privatized will not suffer any loss.

In this, all the customers will continue to get all the banking facilities as before. In fact, at present, the central government is paying a lot of attention to disinvestment.

By selling all the government stake, the government wants to increase the revenue even further and wants to use all those money on government schemes. The government has set a target of collecting Rs 1.75 lakh crore from disinvestment in the year 2021-2022.

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