The Centre is set to amend the IDBI (Transfer of Undertaking and Repeal) Act, 2003, to provide the lender a banking licence after the government offloads its stake, said an official, clearing a major hurdle in its strategic sale.
The stake sale plan was delayed as the government selling its entire shareholding in the bank would have left the lender without a banking licence, requiring the new owner to apply for a fresh one.
The government will move amendments to the Act in the Finance Bill 2021, which will grant a licence to IDBI Bank under Section 22 of the Banking Regulation