Government of India Think Tank, NITI Aayog, has submitted names of Public Sector Undertaking that will be privatised to Core Group of Secretaries on Disinvestment.

  • All these Public Sector Banks will be privatised by FY 2022.
  • Privatisation is being done as part of government’s disinvestment process to raising funds.

Backdrop

The Government of India’s aim of privatising 2 public sector banks and one general insurance company was highlighted during Budget 2021-22. Task of identifying government owned banks and insurance company was given to NITI Aayog.

Who decided these names?

The Panel comprising of members from NITI Aayog, economic affairs secretary, expenditure secretary, revenue secretary, legal affairs secretary, corporate affairs secretary, Department of Investment and Public Asset Management secretary and Department of Public Enterprises secretary.

Alternative Mechanism

Now, these names will go to Alternative Mechanism for approval after of Core Group of Secretaries, headed by Cabinet Secretary, gives its approval. After AM, final approval will be taken by Cabinet headed by PM Narendra Modi.

Public Sector Banks in India

They are major banks, where majority stake (50 per cent and more) is held by Union Ministry of Finance or Ministry of Finance of various State governments. Its shares are listed on stock exchanges. Officers working in PSBs are gazetted officers. The Government of India got involved in banking business after nationalization of Imperial Bank of India in 1955. 60 per cent stake was taken by RBI and new bank was named “SBI”.

NITI Aayog submits names of 2 PSU banks to be privatised NITI Aayog submits names of 2 PSU banks to be privatised