New Delhi: The government is likely to bring amendments to the Banking Regulation Act, 1949 and other laws to push for banking sector reforms during the upcoming Budget session.
Apart from this, amendments to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 are needed for privatization of public sector banks. public sector banks.
These laws led to nationalization of banks in two phases and the provisions of these laws need to be amended for privatization of banks, they said.
The amendments, if approved by Parliament, would help reduce government stake in state-owned banks below 51 percent, improve banking governance and improve investor protection, the sources said.
The Parliament session that begins on July 22 will see the presentation of the budget on July 23 and will conclude with the passage of the finance bill on August 12.
It should be noted that the government had included amendments to these laws that would be taken up during the winter session of 2021, but these bills could not be introduced.
"To make amendments in the Banking Companies (Acquisition and Transfer of Companies) Acts, 1970 and 1980 and incidental amendments to the Banking Regulation Act, 1949 in the context of the announcement of the Union Budget 2021 in respect of privatization of two public sector banks," according to the list of legislative business for the winter session.
Finance Minister Nirmala Sitharaman, while presenting the budget for 2021-22, announced privatization of public sector banks (PSBs).
"In addition to IDBI Bank, we propose to take up privatization of two PSBs and one general insurance company in 2021-22," she had said.
To ensure privatization of a general insurance company, the government has already received Parliament's approval for the General Insurance Business (Nationalization) Amendment Bill, 2021, in the monsoon session that ended in August 2021.
In April 2020, the government consolidated 10 PSBs into four and as a result, the total number of PSBs reduced to 12 from 27 in March 2017.
As per the merger plan, United Bank of India and Oriental Bank of Commerce were merged with Punjab National Bank, making the proposed entity the second largest PSB.
Syndicate Bank was merged with Canara Bank, while Allahabad Bank was subsumed under Indian Bank. Andhra Bank and Corporation Bank merged with Union Bank of India.
In a first three-way merger, Bank of Baroda merged with itself Vijaya Bank and Dena Bank in 2019. SBI had merged five of its associate banks - State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore and State Bank of Hyderabad, and also Bharatiya Mahila Bank from April 2017.
Apart from this, amendments to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 are needed for privatization of public sector banks. public sector banks.
These laws led to nationalization of banks in two phases and the provisions of these laws need to be amended for privatization of banks, they said.
The amendments, if approved by Parliament, would help reduce government stake in state-owned banks below 51 percent, improve banking governance and improve investor protection, the sources said.
The Parliament session that begins on July 22 will see the presentation of the budget on July 23 and will conclude with the passage of the finance bill on August 12.
It should be noted that the government had included amendments to these laws that would be taken up during the winter session of 2021, but these bills could not be introduced.
"To make amendments in the Banking Companies (Acquisition and Transfer of Companies) Acts, 1970 and 1980 and incidental amendments to the Banking Regulation Act, 1949 in the context of the announcement of the Union Budget 2021 in respect of privatization of two public sector banks," according to the list of legislative business for the winter session.
Finance Minister Nirmala Sitharaman, while presenting the budget for 2021-22, announced privatization of public sector banks (PSBs).
"In addition to IDBI Bank, we propose to take up privatization of two PSBs and one general insurance company in 2021-22," she had said.
To ensure privatization of a general insurance company, the government has already received Parliament's approval for the General Insurance Business (Nationalization) Amendment Bill, 2021, in the monsoon session that ended in August 2021.
In April 2020, the government consolidated 10 PSBs into four and as a result, the total number of PSBs reduced to 12 from 27 in March 2017.
As per the merger plan, United Bank of India and Oriental Bank of Commerce were merged with Punjab National Bank, making the proposed entity the second largest PSB.
Syndicate Bank was merged with Canara Bank, while Allahabad Bank was subsumed under Indian Bank. Andhra Bank and Corporation Bank merged with Union Bank of India.
In a first three-way merger, Bank of Baroda merged with itself Vijaya Bank and Dena Bank in 2019. SBI had merged five of its associate banks - State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore and State Bank of Hyderabad, and also Bharatiya Mahila Bank from April 2017.
