These 3 Govt Banks Can Be Sold To Private Firms; India Post Will Become 2nd Biggest Bank
Policy think tank NITI Aayog has asked Govt to sell three PSU banks as part of privatization push, and merge India Post with rural banks to create India’s 2nd biggest network of Govt bank after SBI.
How will this happen?
And how will this impact you, as the end-user?
Keep reading to find out more!
These 3 Govt Banks Can Be Sold To Private Firms
As part of the privatization push, and improve efficiency of the Govt machinery, Niti Aayog has suggested that three Govt banks should be sold to private companies.
These three banks are: Punjab & Sind Bank, UCO Bank and Bank of Maharashtra.
However, selling Govt banks to private entities is not a easy task, and there exists several legal hurdles.
To start with, some major amendments to the Banking Companies (Acquisition and Transfer) Act of 1970 needs to be implemented.
NITI Aayog has also suggested for speedy implementation of Data Accountability And Transparency Act, which has been recommended by Comptroller and Auditor General (CAG).
Ministry of Statistics and Programme Implementation (MoSPI) can also be revamped, so that Govt can take better financial decisions.
India Post Can Be Merged With Regional Rural Banks
NITI Aayog has made another very critical suggestion: Merge India Post with regional rural banks or RRBs, and thereby created India’s 2nd biggest bank after SBI.
Once this is done, India Post’s 15 lakh postal outlets can transform into bank branches, and thereby expand their outreach and impact.
As per the suggestions put forth, India Post and Rural Regional Banks across India will be merged, and will become part of a holding company, which will be controlled by Govt.
This is needed, since India Post reported losses of more than Rs 18000 crore last year, while rural regional banks incurred losses of Rs 2.8 lakh crore.
We will keep you updated, as more details come in.