Centre Likely To Introduce Two Key Finance Bills In Parliament's Winter Session | All About It

Finance Minister Nirmala Sitharaman while presenting the 2021-22 budget had announced privatisation of public sector banks for the government's disinvestment target of Rs 1.75 lakh crore.

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Parliament Winter Session: The government is likely to bring two important financial sector bills in the winter session of Parliament. These were announced in the Budget. One of these bills relates to facilitating privatisation of public sector banks.

In addition, the Government may also bring a bill to amend the PFRDA, Act, 2013 to separate the National Pension System Trust (NPS) from the Pension Fund Regulatory and Development Authority (PFRDA). This will widen the scope of pension.

Sources said the government is likely to bring a bill to amend the Banking Regulation Act, 1949 in the upcoming winter session of Parliament. In addition, the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and the Banking Companies (Transfer of Acquisitions and Undertakings) Act, 1980 will need to be amended for privatisation of banks.

Banks nationalised in two phases

The banks were nationalised in two phases through these laws. Now the provisions of these laws will need to be amended to privatise banks, sources said. The one-month winter session of Parliament is expected to begin by the end of next month. The second installment of supplementary demands for grants will also be placed in this session. In addition to the Finance Bill, the government can increase spending through it.

Finance Minister Nirmala Sitharaman, while presenting the 2021-22 budget, had announced privatisation of public sector banks for the government's disinvestment target of Rs 1.75 lakh crore. The centre proposed to privatise two public sector banks other than IDBI Bank. The government has already got parliament's approval through the General Insurance Business (Nationalization) Amendment Bill, 2021 in the monsoon session that ended in August 2021 for privatisation of the general insurance company.

Sources said that after amending the PFRDA Act, the powers, functions, and responsibilities of NPS trusts may come under the Company Act.