The central government will work with the Reserve Bank of India for the execution of the plan of bank privatization. The privatization plan was announced by Finance Minister Nirmala Sitharaman while presenting Union Budget 2021-22.
Key Points
- As per the Budget speech, the minister informed that two banks will be privatized as a part of its disinvestment plan.
- However, the names of the banks to be privatized are still not out.
- Sitharaman has now informed that the government will help the central bank to execute the bank privatization plan.
- She also informed that the government has no plan to set up any bank investment company to house the government stakes in banks.
- When asked about the divestment targets and the government’s ability to push through necessary reforms to earn the projected revenues, the minister exuded confidence of hitting budgetary estimates of Rs 1.75 lakh crores divestment.
RBI Monetary Policy Committee Meeting
In the recent MPC meeting, it has been announced to keep all policy rates unchanged. At present, the repo rate is 4.0% while the reverse repo rate is 3.25%. The bank rate and marginal standing facility (MSF) rate is 4.25% at present.
Expert Committee on UCBs
RBI has announced to set up an expert committee for strengthening Urban Co-operative Banks (UCBs). The committee will make a medium-term road map to enable faster resolution/rehabilitation of UCBs.
