New Delhi: Finance Minister Nirmala sitharaman said on monday cabinet The Committee on Privatization is yet to take any decision regarding the disinvestment of the two public sector banks.
He said in the Lok Sabha that the government had announced in the budget for 2021-22 its intention to approve the policy of privatization of two public sector banks (PSBs) and strategic disinvestment of public sector enterprises during the year.
“The consideration of various issues relating to disinvestment, including, inter alia, the selection of bank(s), has been entrusted to the Cabinet Committee designated for the purpose by the respective Cabinet Committee for Privatization of Public Sector Banks. The decision has not been taken in this regard,” he said.
The government has budgeted Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions, including two public sector banks and an insurance company, during the current financial year.
In another reply, he said the RBI last month warned members of the public against certain co-operative societies using the word ‘bank’ as part of their name and accepting deposits from non-members/associate members Was.
It is tantamount to carrying on banking business without obtaining a banking license from RBI, in violation of the provisions of the Banking Regulation Act, 1949.
In this regard, he said, RBI had requested chief secretaries and central registrars of all states and union territories co-operative societies To take necessary action against such unlicensed entities operating in their respective jurisdictions.
“RBI has informed that through the above press release, RBI is trying to protect and protect the interest of the public arising out of the misuse of the word ‘Bank’ by certain co-operative societies entitled to use that word. No,” said Sitaraman.
The use of the word ‘bank’ as part of the name of the societies creates a misconception among the public that such co-operative societies are banks which are under the regulation and supervision of RBI and the depositors come under its purview. Deposit Insurance and Credit Guarantee Corporation (DICGC) security, he said.
“Therefore, in order to protect the members of the public, RBI has cautioned that such committees have neither been issued any license under the BR Act, 1949 nor are they authorized by the RBI to carry on banking business and from the DICGC. Insurance cover is also not available for deposits with these societies,” he said.
He said in the Lok Sabha that the government had announced in the budget for 2021-22 its intention to approve the policy of privatization of two public sector banks (PSBs) and strategic disinvestment of public sector enterprises during the year.
“The consideration of various issues relating to disinvestment, including, inter alia, the selection of bank(s), has been entrusted to the Cabinet Committee designated for the purpose by the respective Cabinet Committee for Privatization of Public Sector Banks. The decision has not been taken in this regard,” he said.
The government has budgeted Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions, including two public sector banks and an insurance company, during the current financial year.
In another reply, he said the RBI last month warned members of the public against certain co-operative societies using the word ‘bank’ as part of their name and accepting deposits from non-members/associate members Was.
It is tantamount to carrying on banking business without obtaining a banking license from RBI, in violation of the provisions of the Banking Regulation Act, 1949.
In this regard, he said, RBI had requested chief secretaries and central registrars of all states and union territories co-operative societies To take necessary action against such unlicensed entities operating in their respective jurisdictions.
“RBI has informed that through the above press release, RBI is trying to protect and protect the interest of the public arising out of the misuse of the word ‘Bank’ by certain co-operative societies entitled to use that word. No,” said Sitaraman.
The use of the word ‘bank’ as part of the name of the societies creates a misconception among the public that such co-operative societies are banks which are under the regulation and supervision of RBI and the depositors come under its purview. Deposit Insurance and Credit Guarantee Corporation (DICGC) security, he said.
“Therefore, in order to protect the members of the public, RBI has cautioned that such committees have neither been issued any license under the BR Act, 1949 nor are they authorized by the RBI to carry on banking business and from the DICGC. Insurance cover is also not available for deposits with these societies,” he said.
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