New Delhi: Minister of Finance Nirmala Sitharaman on Monday said the Cabinet Committee on privatization had not made a decision in connection with the two public sector banks.
The government has a budget of 2021-22 announcing its intention to take the privatization of two public sector banks (PSB) during this year and the strategic policy approval of the strategic public sector company, he said at Lok Sabha.
“Considering various problems related to the disinvestment, which is between Alia, including the selection of banks entrusted to the designated Cabinet Committee for this purpose.
The decision by the Cabinet Committee concerned for the privatization of PSBS has not been taken in this matter,” he said.
The government has budgeted Rs 1.75 Lakh Crore from stock sales in public sector companies and financial institutions, including two PSB and one insurance company, during the current financial year.
In another reply, he said RBI last month warned public members of several cooperative communities using the word ‘bank’ as part of their name and received non-member deposits / members of the Associate.
This is the same as doing the banking business without getting a banking license from the RBI, which violates the provisions of the Banking Regulation, in 1949.
In this case, he said, the RBI has asked the Head of Secretary throughout the state and the United States and the Central Region of the Cooperative Community Center to take action What is needed for equity without permission operating in each jurisdiction.
“RBI has told that through the press release mentioned above, the RBI is trying to protect and protect the public interest arising from the use of the word ‘bank’ wrong by some cooperative communities who have no right to use the term,” Sitharaman said.
The use of the term ‘bank’ as part of the community’s name produces a false impression among the public that the cooperative community is banks under the RBI regulations and supervision and depositors covered by insurance deposits and corporate corporate loans protection (DICGC), he said.
“Therefore, with a view to protecting public members, the RBI has warned that such a society is not issued by every license under the BR Law, 1949 is also not authorized by the RBI for doing the banking business and the insurance cover of DICGC is also not available.
For Deposits are placed with this community, “he said.