Govt to Work with RBI on Bank Privatization Plan
The government will work with the Reserve Bank for execution of the bank privatization plan announced in the budget.In the union budget presented last week, Sitharaman had announced the privatisation of two banks as part of its disinvestment plan. Bank unions have opposed the move. The details are being worked out. I have made the announcement but we are working together with the RBI. We will let you know when the government is ready to announce. On the bad bank, Sitharaman said the government may have to give some guarantee for the National Asset Reconstruction Company (ARC), but stressed that this is a solution which has come from the banks itself and will also be led by them. Sitharaman alleged that the banks' non-performing assets, which are to be transferred into the National ARC, are a legacy of the mismanagement in the past.