The Centre has accelerated the privatization of two state-owned banks. On Wednesday, a source from the Centre was quoted by the news agency PTI as stating. The Modi government revised the 'Banking Regulation Act' earlier this year to allow private involvement in state-owned banks. According to sources, the Centre intends to introduce a law in this regard during Parliament's monsoon session.
Last year, Union Finance Minister Nirmala Sitharaman stated that the Centre intends to begin the privatization of several state-owned banks. The Bank Nationalization Acts of 1970 and 1980, as well as the Bank Control Act of 1949, will be changed as a result.
The procedure has begun, according to sources in the finance ministry. In addition, the government has begun drafting a draught of the 'Banking Regulation Act.' If everything goes according to plan, the amendment will be passed during the monsoon session. Of course, there's a chance the opposition will be stymied. However, due to the majority, the government should not have any problem in passing this law.
The amendment was enacted by parliament, and the privatisation of state-owned banks will no longer be prohibited. After that, the process of privatising state-owned banks will commence. Two state-owned banks were initially targeted for disinvestment. The Centre has yet to reveal the names of the two banks that will be privatised.