Categories: Banking

NITI Aayog recommends privatisation of Central Bank, Indian Overseas Bank

NITI Aayog has recommended divesting government stake in the Central Bank of India and Indian Overseas Bank (IOB) as part of the privatisation initiative announced in the Union Budget. Finance Minister Nirmala Sitharaman, in her Budget speech, had announced privatising two public sector banks (PSBs) and one general insurance company in 2021-22. As per the new PSE (Public Sector Enterprise) policy for ‘Aatmanirbhar Bharat’, NITI Aayog is entrusted with the task to suggest names of PSUs in strategic sectors to be merged, privatised, or made subsidiaries of other PSUs.

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The Department of Investment and Public Asset Management (DIPAM) and Department of Financial Services (DFS) will examine the proposal and discuss legislative changes needed for the privatisation of banks. The finalisation of privatisation and disinvestment of public sector enterprises is a multi-layered process. After a Core Group of Secretaries, headed by the Cabinet Secretary, clears the suggested names, the proposal will go to Alternative Mechanism (AM) for its approval and eventually to the Cabinet headed by the Prime Minister for a final nod.

Important takeaways for all competitive exams:

  • NITI Aayog Formed: 1 January 2015.
  • NITI Aayog Headquarters: New Delhi.
  • NITI Aayog Chairperson: Narendra Modi.

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Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.

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