Privatisation of the Banking Sector: Current Affairs Special Series

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Team Adda247 and BankersAadda are here with a Current Affairs Special Series for SBI and IBPS interview 2021. In this series, candidates will be introduced to current affairs topics on daily basis, which will not only improve their general awareness but also will ensure that the candidates do not lack if any current affairs topic is asked in the interview. Today’s Current Affairs Topic is the Privatization of the Banking Sector.

Privatisation of the Banking Sector

Union Finance Minister, Nirmala Sitharaman has announced in the budget that the government is going to privatize two public sector banks (PSBs) in the financial year 2021-22.

Now news coming from some sources that, Government has shortlisted four PSBs for its two privatization candidates. The shortlisted four Public Sector Banks (PSBs) are Bank of Maharashtra, Bank of India, Indian Overseas Bank, and Central Bank of India. The Government of India is going to consider mid-sized to small banks for its first round of privatization to test the waters. In the forthcoming years, it could also look at some of the country’s bigger banks i.e. SBI, BOB, and PNB. India’s recent deepest economic contraction on record caused by Pandemic and its effect, many economists thinking that in this worsen situation Government’s bolder reforms and steps would be very meaningful in medium to the longer-term horizon. The government also wants to take over from the banking sector reeling under a heavy load of non-performing assets (NPAs).

Banking unions and employees started a two-day strike to oppose the government’s move to privatize banks.

Union Finance Minister of India: Nirmala Sitharaman

Union Finance Minister for the state: Anurag Singh Thakur