The government had aimed to bring the Banking Laws (Amendment) Bill 2021 in an attempt to privatize two public sector banks (PSBs). However, it now seems to be a distant possibility as it doesn’t seem possible to pass the law during this session. The Winter session will end on December 23. However, the government is planning to relook at some of the aspects of the amendment bill, before passing it in the parliament. As a result, it will be discussed with the Reserve bank of India (RBI) on this matter. Another factor behind the postponing of the passing of this bill is because the PSB employees went on a 2-day strike protesting the government’s decision to privatize them.
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Even though the government manages to privatize the two banks, sources say that it is still desiring to hold a share of 26% in each of the PSBs. Finance Minister Nirmala Sitharaman had announced in her 2021-22 fiscal year budget that the two PSBs will be privatized to generate funding of nearly 1.75 lakh crore rupees. However, the recent employee strikes along with many other factors coming into play have forced the government to think upon its decision again. It is to be noted that the strike was called at a national level by the Union Forum of Bank Unions (UFBU) protesting the government’s decision to privatize the PSBs. As a result, nearly 9 lakh PSB employees went on a strike. It seems highly unlikely that the government will be able to pass this bill in the parliament before the conclusion of the Winter session. However, it is to be seen if the bill comes to fruition at all.
