The government may bring amendments to two Acts this year to pave the way for privatization of public sector banks. These modifications are expected to be introduced in the monsoon session or later. Sources said that for privatization, amendments in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 would be necessary.
Due to these acts, the banks were nationalized in two stages and the provisions of these laws would have to be changed for the privatization of banks. As the government has already announced the list of legislative business for the budget session, it is expected that these amendments can be introduced in the monsoon session or later.
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In the current budget session, plans to introduce more than 38 Bills including Finance Bill 2021, Supplementary Demands for Grants for 2020-21 and related appropriation bill, National Bank for Financing Infrastructure and Development Bill 2021 and Cryptocurrency and Official Digital Currency Regulation Bill 2021. is. Finance Minister Nirmala Sitharaman, while presenting the budget 2021-22 earlier this month, had announced raising Rs 1.75 lakh crore from the disinvestment of public sector banks (PSBs).