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Cabinet to introduce bill in Parliament that aims to privatise two public sector banks

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The government will introduce the Banking Laws (Amendment) Bill 2021 with the aim to privatise two public sector banks in the forthcoming winter session of Parliament.

The winter session of the Parliament will commence from November 29.

A total of 26 bills are scheduled to be introduced during the session, of which the proposed legislation is one of them.

In order to privatise two public sector banks, amendments need to be made in Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980 as well as incidental amendments are required to be made in the Banking Regulation Act, 1949. The bill is listed for introduction, consideration as well as passing during the forthcoming Winter session, according to official sources.

Finance minister Nirmala Sitharaman while presenting the Union Budget for 2021-22 22 had announced the privatisation of two public sector banks as part of the government’s disinvestment drive to garner ₹ 1.75 lakh crore in the current fiscal.

Apart from this, another significant bill scheduled to be introduced is the Pension Fund Regulatory and Development Authority (Amendment) Bill, 2021, the purpose of which is to amend the Pension Fund Regulatory and Development Authority (PFRDA) Act to enable separation of National Pension System Trust from Pension Fund Regulatory and Development Authority.

Introduction of this bill will ensure universal pension coverage as well as strengthening PFRDA

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