Cabinet: Cabinet Committee on Privatization has yet to decide on two banks: Finance Minister

New Delhi: Finance Minister Nirmala Sitharaman Said on Monday Cabinet The committee on privatization has yet to decide on the sale of the two public sector banks.
The government had announced in the budget 2021-22 to privatize two public sector banks (PSBs) during the year and approve a policy of strategic disinvestment of public sector enterprises, she told the Lok Sabha.
“Consideration on various issues related to disinvestment, including, among other things, selection of banks (s), is entrusted to the Cabinet Committee appointed for this purpose. No decision has been taken in this regard by the relevant Cabinet Committee on Privatization of PSBs,” she said. Said.
During the current financial year, the government has raised Rs. 1.75 lakh crore budget.
In another reply, she said that the RBI had last month warned the public against using the word ‘bank’ as part of the names of some co-operative societies and accepting deposits from non-members / associate members.
This is tantamount to conducting banking business without obtaining a banking license from the RBI in violation of the provisions of the Banking Regulation Act, 1949.
In this regard, she said, the RBI had requested the Chief Secretaries of all the States and Union Territories and the Central Registrar. Cooperatives To take necessary action against such unlicensed organizations operating in their respective jurisdictions.
“The RBI has informed that through the above press release, the RBI is trying to protect and safeguard the interests of the people arising out of the misuse of the word ‘bank’ by some co-operatives who are not entitled to use the word,” Sitharaman said.
The use of the word ‘bank’ as part of the names of societies gives a false impression that such co-operative societies are banks which are regulated and supervised by the RBI and the depositors are covered by the RBI. Deposit Insurance and Credit Guarantee Corporation (DICGC) protection, she said.
“Therefore, for the protection of the members of the public, the RBI has warned that such societies are neither licensed under the BR Act, 1949 nor are they authorized by the RBI to conduct banking business and no insurance cover is available from the DICGC. For deposits put together, “she said.


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