Not all banks would be privatised: Nirmala Sitharaman amid bank strike in India
Amid the bank strike in India against the privatisation of banks, Union Finance Minister Nirmala Sitharaman on Tuesday said that "not all banks would be privatised."
She said that even for those banks which were likely to be privatized, the privatized institutions too will continue to function after privatization and that the interests of the staff will be protected.
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Nirmala Sitharaman, on privatisation of banks, announced that the interests of workers of banks which were likely to be privatized would absolutely be protected - whether their salaries or scale or pension, all would be taken care of.
"We have announced a Public Enterprise Policy, where we have identified four areas where public sector presence will be there, in this, financial sector too is there. Not all banks are going to be privatized," she said. Her statement comes amid a bank strike in India.
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Even as she informed that the Union Cabinet has cleared the setting up of a Development Finance Institution (DFI), in acknowledgment of the realization that both development and financial objectives will matter for setting up a DFI.
"DFI will help raise long-term funds; Budget 2021 will provide the initial amount. The capital infusion will be of about Rs 20,000 Cr this year; the initial grant will be Rs. 5,000 Cr, additional increments of the grant will be made within the limit of Rs 5,000 Cr," she said.
The past attempts to have alternative investment funds were taken up, but for various reasons, we ended up with no bank which could take up long-term risk (which is very high) and fund development, said Sitharaman.
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