Centre seeks to grant bank licence to PSBs to enable privatisation

The government is exploring several options to address the issue for enabling privastisation of PSBs

Amendments moved by the Centre to enable privatisation of two public sector banks (PSBs) may provide them a “bank licence” after the government gives up majority shareholding in these lenders. 

With the government finalising amendments to the Banking Companies (Acquisition and Transfer of Undertakings) Act, privatisation of two PSBs, will require granting them a banking licence, said an official.

When banks were nationalised, they were allowed to continue with banking operations, said an official. Bringing down the government’s shareholding in the banks below 51 per cent may require them granting a banking licence.

Banks nationalised through the bank nationalisation