Winter Sessions of Parliament: Government may bring two Finance Bills relating to privatization of banks and Pension Fund

Agency, New Delhi

Published by: Kuldeep Singh |
Mon, 25 Oct 2021 03:34 AM IST Updated

Summary

The government is preparing to introduce two important financial bills in the winter session of Parliament. Finance Minister Nirmala Sitharaman announced the privatization in this year’s budget speech. Apart from this, the government may also bring in the Pension Fund Regulatory and Development Authority (PFRDA) Act, 2013 Amendment Bill in this session.

Finance Minister Nirmala Sitharaman in Parliament
– Photo: PTI

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The government may bring two important financial bills in the winter sessions of Parliament, one of which is related to the privatization of public sector banks. The privatization was announced by Finance Minister Nirmala Sitharaman in her budget speech this year. Apart from this, the government may also bring in the Pension Fund Regulatory and Development Authority (PFRDA) Act, 2013 Amendment Bill in this session. Its goal is to universalize the scope of pension coverage by separating PFRDA from the National Pension Trust.

One bill is related to the privatization of banks while the other is related to the pension fund.
Relevant sources said the government may bring in the Banking Regulation Act 1949 Amendment Bill during these winter sessions. In addition, amendments to the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 and the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980 are required for the privatization of banks. Sources said the two laws had in the past led to the nationalization of banks in two phases and now the laws would have to be amended to hand over the banks to the private sector.

The winter sessions of Parliament, which last for almost a month, are likely to begin later next month and continue until the third week of December. A bill on the second batch of supplementary demands for grants, which will allow the government to approve additional spending beyond the budget, will also be brought up in this session.

1.75 lakh crore mobilization target
Presenting the 2021-22 budget, Finance Minister Nirmala Sitharaman said the privatization of public sector banks would raise Rs. The target is to mobilize Rs 1.75 lakh crore. For this, he proposed to privatize two banks, IDBI Bank and a general insurance company. For the privatization of the insurance company, the government passed the General Insurance Business (Nationalization) Amendment Bill, 2021 in the monsoon sessions of Parliament in August.

Expansion

The government may bring two important financial bills in the winter sessions of Parliament, one of which is related to the privatization of public sector banks. The privatization was announced by Finance Minister Nirmala Sitharaman in her budget speech this year. Apart from this, the government may also bring in the Pension Fund Regulatory and Development Authority (PFRDA) Act, 2013 Amendment Bill in this session. Its goal is to universalize the scope of pension coverage by separating PFRDA from the National Pension Trust.

One bill is related to the privatization of banks and the other is related to the pension fund.

Relevant sources said the government may bring in the Banking Regulation Act 1949 Amendment Bill during these winter sessions. In addition, amendments to the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 and the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980 are required for the privatization of banks. Sources said the two laws had in the past led to the nationalization of banks in two phases and now the laws would have to be amended to hand over the banks to the private sector.

The winter sessions of Parliament, which last for almost a month, are likely to begin later next month and continue until the third week of December. The bill on the second batch of supplementary demands for grants, which will allow the government to approve additional spending beyond the budget, will also be brought up in this session.

1.75 lakh crore mobilization target

Presenting the 2021-22 budget, Finance Minister Nirmala Sitharaman said the privatization of public sector banks would raise Rs. The target is to mobilize Rs 1.75 lakh crore. For this, apart from IDBI Bank, he proposed the privatization of two banks and a general insurance company. For the privatization of the insurance company, the Government General Insurance Business (Nationalization) Amendment Bill, passed in the monsoon sessions of Parliament in August 2021.

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