Cabinet has not taken any decision on privatisation of two PSBs: FM Nirmala Sitharaman

Earlier, in its union budget for FY22, the government notified its intent to privatize the two PSBs in the year.

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Clouds of confusion swirl around the privatization of public sector banks. The parliament informed on Tuesday that the union cabinet is yet to decide on the matter.

Earlier, in its union budget for FY22, the government notified its intent to privatize the two PSBs in the year and approval of a policy of strategic disinvestment of public sector enterprises, finance Minister Nirmala Sitharaman said in a written reply in the Rajya Sabha on Tuesday.

The matter of privatization of PSBs coincided with the 2 days strike by the bank employees. The employees argued that the decision will seize the money from the public hands and hand it over to the private houses. The objective of the policy was to enhance the public sector by infusing private capital, technology and best practices, according to the union finance minister.

“Consideration of various issues related to disinvestment is entrusted to the Cabinet Committee designated for this purpose/ Cabinet. Decision by the Cabinet Committee/Cabinet has not been taken in this regard,” the FM added.

Punjab Bank Employees’ Federation president PR Mehta, said, “Public sector banks act as catalysts in economic development of the nation in general and particularly for underprivileged sections of the society and backward regions. Nationalised banks have played a major role in the development of agriculture, small trade, small business, SSI, transport and in upliftment of weaker sections of the society. In 2008, when the world economy had plunged into a deep financial crisis and meltdown, it was PSBs, which helped the Indian economy survive.”