Bank employees' unions have begun to vehemently oppose amendments to reduce government participation in public sector banks during the current winter session. What do these amendment laws say?
Finance minister Nirmala Sitharaman had announced during the budget session that two central government-controlled public sector banks in india would be privatized.
These Amendment Acts will amend three laws, namely the banking Companies Act 1970, the banking Companies Act 1980 and the banking Regulation Act 1949.
In 1969, 14 large private banks were nationalized. The law was introduced in 1970. Six private banks were nationalized by a law introduced in 1980.
At that time 20 banks were nationalized, many of which were merged and now operate as 12 banks. Apart from the bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>state bank of india, 11 other banks fall under these two laws.
"Under the existing law, the central's shares in these banks should be 51 per cent only. It cannot be reduced without amending the law. The amendment is being brought in to reduce this investment percentage. The bank can be privatized if it wants to. It will ruin the country's economy. "
"This is what they did in the case of the Life Insurance Company. Initially, it was said that only the shares of the life insurance corporation of india would be sold.
From 1947 to 1969, 558 private banks went bankrupt. Thirty-eight private banks have gone bankrupt since '69.
Ten new banks were opened after 1991. In it, Krishnan points out that four banks, Global Trust bank, Centurion bank, Times bank and bank of Punjab, have gone missing, and that private banks also have bad loans.
