If the reports appeared in the press are to be believed,Reserve Bank of India is mooting proposals to privatise the public sector banks in the country . An RBI panel has recommended repeal of Bank Nationalisation Acts of 1970 and 1980, together with the State Bank of India Act and the SBI (Subsidiary Banks) Act. Instead,all banks should be incorporated under the Companies Act. To begin with the privatisation , the panel proposes to dilute government stake in public sector banks to below 50 %.
The committee also recommends to expanding single investor shareholding caps to beyond the current practice of vetting every stake buy proposal of 5 per cent and above by the RBI, by making a new category of investors, called ‘authorised bank investors’.They are to be permitted a 20 per cent equity stake without regulatory approval or 15 per cent if it also has a seat on bank board.All other investors should be permitted upto 10 per cent.
The RBI governor has come out in support of the report terming it as candid and the intentions are very clear.It was only a few days back, the government curtailed the services of State Bank Of India by handing over some of the services to the Reliance.
The common people of the country came to know about the banks and started availing its services only after the banks were nationalised. Also,the farmers who were subjected to sheer exploitation by the greedy money lenders got some relief ,when availed loans from the public sector banks.Whether these are all going to be the stories of the past !