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Govt to eventually privatise most public sector banks, says finance secretary

Govt to eventually privatise most public sector banks, says finance secretary

Thrust now of the government is to go beyond this position that the public sector banks will remain in the public sector, says finance secretary TV Somanathan

Banking is one of those sectors where only a bare minimum public sector banks will eventually remain, says finance secretary Banking is one of those sectors where only a bare minimum public sector banks will eventually remain, says finance secretary

The Centre will eventually privatise most public sector banks, finance secretary TV Somanathan said at India Policy Forum 2021. The finance secretary, however, said these were his personal views, and not of the government. He was speaking at the forum was held by the economy-based think tank National Council of Applied Economic Research (NCAER) on July 13.

"The thrust now of the government is to go beyond this position that the public sector banks will remain in the public sector. We have announced that most of the public sector banks will eventually be privatised… Saying eventually privatised and actually privatising them are two different things, but we are actively engaged in privatising them. And banking is one of those sectors where only a bare minimum public sector banks will eventually remain, that is the stated policy," he said, reported CNBC TV18.

He also said the subsidy schemes run by the Centre need an overhaul so the focus should be diverted to essential items that need the actual support. He also advocated for an improvement in public expenditure across education, health and infrastructure sectors to ensure fiscal improvement. He also said the Centre has fixed the initial glitches that were faced by taxpayers during the launch of the new income tax filing portal.

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