Tag: parliament

Ambani backs data privacy, cryptocurrency bills, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


New Delhi, Billionaire Mukesh Ambani on Friday backed the proposed data privacy and cryptocurrency bills, saying India is putting in place the most forward-looking policies and regulations. Ambani, who has been a votary of Indians owning and controlling their own data and the nation drafting strict rules around how digital information is stored and shared, said nations have the right to build and protect strategic digital infrastructure.

Stating that data is the ‘new oil’, he said every citizen’s right to privacy has to be safeguarded.

“India is putting in place the most forward-looking policies and regulations,” he said at the Infinity Forum, hosted by International Financial Services Centres Authority (IFSCA).

The country, he said, already has a great framework of digital identity – through Aadhaar, digital bank accounts and digital payments.

“We are on the verge of introducing data privacy bill, and the cryptocurrency bill. I think we are on the right track,” he said.

The comments came as the government looks to bring a new bill in Parliament to treat cryptocurrencies as a financial asset while safeguarding small investors. The legislation may stipulate a minimum amount for investments in digital currencies while banning their use as legal tender.

The legislative agenda for the current winter session of Parliament that started on November 29 lists bringing of a bill that seeks to prohibit all private cryptocurrencies except “certain exceptions to promote the underlying technology of cryptocurrency and its uses.”

While the government is considering taxing gains from cryptocurrency, the Reserve Bank of India wants a complete ban on digital currencies as it feels this could affect the nation’s macroeconomic and financial stability.

“Data and digital infrastructure is strategically important for India and every other nation in the world. Every country has the right to build and protect this strategic digital infrastructure,” he said adding a uniform global standard was needed so that cross-border transactions, collaborations and partnerships are not hampered.

Stating that every citizen’s right to privacy has to be safeguarded, he said the right policies and the right regulatory framework have to balance this with the nation’s need to guard data and digital infrastructure.

Ambani, chairman and managing director of Reliance Industries Ltd, said that he was a big believer in blockchain technology.

“I believe in blockchain technology and this is different from cryptocurrency,” he said, adding, “Blockchain is very important for a trust-based, equitable society.”

While the bill for regulating cryptocurrency is in the works, RBI Governor Shaktikanta Das is among those who feel that the blockchain technology underpinning cryptocurrencies could exist on its own, even without the currency.

“Using blockchain, we can deliver unprecedented security, trust, automation and efficiency to almost any type of transaction,” Ambani said. “It can be used to modernize our supply chains that form the lifeblood of our economies.”

India is now well on its way to transforming itself into a leading Digital Society, having put the digital infrastructure, and the regulatory framework in place.

“Data is indeed the ‘new oil’. But the new oil is fundamentally different from the traditional oil. Traditional oil was extracted only at select places – thus, it created wealth only for some countries. In contrast, the new oil — that is Data — can be generated and consumed everywhere and by everybody. It has the potential to create value equitably, across sectors, across geographies, across economic classes,” he said.

His comments come against the backdrop of a debate on how India should balance user protections with support for its digital economy in the world’s fastest-growing major internet market. Foreign companies and hundreds of home-grown startups have flourished amid a dearth of regulation.

Ambani’s Jio has supercharged internet adoption, helping crash data prices since launch in 2016, and his group has now created an online-to-offline retail platform take on the likes of Amazon and Walmart-backed Flipkart, which are both betting big on India’s e-commerce market.

The country, he said, is transitioning fully from 2G to 4G. “We are in the process of creating an equally affordable ecosystem of devices to enable greater adoption, supported by a faster rollout of optical fiber, cloud, and data center infrastructure.

“The next step will be the connectivity of machines, devices and vehicles, which is the Internet of Things. With 5G rollout next year in India, we are on our way to having one of the most advanced digital infrastructures anywhere in the world.”

Ambani said India is well on its way to transforming itself into a leading Digital Society, having put the digital infrastructure, and the regulatory framework in place.

“Finance is at the heart of everything, and I believe we are in very early stages of sporadic digitization, and with various new-age technologies emerging, the opportunity is in adopting a decentralised model of finance,” he said.

There will be centralised government and central bank policies, but there will be a path to decentralized technological solutions where finance will be enabled and available to everybody, Ambani said.

Real-time technologies will help settle trades, not in days or hours, but in real-time. Smart contracts will become a reality.

“Convergence of real-time technologies, distributed ledger, blockchain, smart tokens etc with physical infrastructure using IoT will redefine the decentralized financing sector in a way that we have never imagined,” he added.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

Cryptos, far from the regulators’ glare

Banking & Finance

[ad_1]

Read More/Less


The manner in which cryptocurrencies which began as innocuous playthings of geeks went on to become the most sought after asset class and a threat to traditional cross-border payment channels, while managing to stay beyond the reach of regulators, shows the challenges that digital innovation pose.

The original white paper on Bitcoin, put out by its founder, the anonymous Satoshi Nakamoto, described it as, “a purely peer-to-peer version of electronic cash (that) would allow online payments to be sent directly from one party to another without going through a financial institution.”

Most regulators did not take it seriously then, since its usage appeared to be limited to a few rebels who wanted to express their displeasure against the traditional fiat currencies. But Bitcoin has cloned thousands of other cryptocurrencies, which are no longer innocent payment channels but have morphed into a highly speculative asset and conduits of illicit cross-border money transfers.

The experience with cryptocurrencies shows that fintech products and innovations need to be taken more seriously going ahead and quickly brought under the regulatory radar before they grow in to a many-headed monster. There are other similar digital innovations such as digital lending or algo trades that have grown surreptitiously in the shadows in a similar manner with the regulators struggling to frame rules them.

Digital lending entities

More than a decade ago, the usurious practices of microfinance companies charging exorbitant rates of interests, harassing and shaming borrowers had led to a spate of suicides making the RBI issue regulations to check the lenders in this space. The same sequence of events is now being repeated, but in digital space.

As the Covid-19 pandemic hit the livelihoods and small businesses, digital lending apps turned out to be a ready source of money to these small borrowers. While funds could be accessed for extremely short periods, ranging from 7 to 15 days, the rates of interest charged by the digital lenders were extremely high, ranging from 60 to 100 per cent, according to reports. These apps required the borrower to give them permission to access all the information on their smartphones under the garb of doing KYC checks. The problem started when the borrowers were unable to repay the loans. They were harassed, publicly shamed and even blackmailed leading to some borrowers even resorting to the extreme step of taking their lives.

The RBI had taken note of these malpractices and issued an advisory in December and had also opened a portal for registering complaints. It recently set up a working group to give recommendations on regulating these businesses.

The swiftness shown by the central bank in trying to bring digital lending entities under regulatory purview is laudable. It’s clear that there is demand for loans from such digital lenders and total clamp-down on this space is not a good idea. Weeding out the bad players and ensuring that the lending activities continue with sufficient protection to borrowers is the way forward.

But the point to note is the manner in which the miscreants were quick to find a regulatory gap and begin operations. This requires equal amount of agility from regulators as well.

Dealing with algo trading

Another instance of a digital innovation blind-siding regulators was seen in the proliferation of algorithmic or programmed trading in Indian stock exchanges. These trades that require little or no manual intervention, where computer programs shoot orders to the exchange servers at lightning speed, currently account for over 60 per cent of turnover in derivatives section and 50 per cent in cash segment of the NSE.

There was a lot of furore about these algo trading around 2012 when it was first revealed that programmed trading, especially from colocation sites located close to exchange servers, are ahead of the small investors in trade execution due to their proximity to the exchanges. Further, the high-frequency-trading programs and other rogue programs were gaming the market to stay ahead of other traditional traders.

But no one could explain how or when algo trading had started on Indian exchanges and how they had become so widespread by 2012. The market regulator was in a fix then, since banning algos would have resulted in depriving liquidity from market and making FPIs turn away. SEBI decided to embrace algos and regulate them by issuing guidelines to exchanges, intermediaries and investors about dealing with algos.

We had dealt with this logjam in https://www.thehindubusinessline. com/opinion/columns/lokeshwarri-sk/ learn-to-live-with-algo-trading/ article22995759.ece

Regulating cryptos will be tricky

With fintech adoption growing at a break-neck speed in the country with growing smart phone and data accessibility, it is clear that innovative products that fox regulators and at times border on the illegal will keep cropping up. Regulators need to be on their toes and increase the strength of their digital surveillance team which has the skills to understand these products.

But, while innovations like digital lending and algo trading can be regulated and streamlined by regulators, cryptocurrencies will be much more challenging. This is because — one, it is hard to categorise cryptocurrencies as either currency or asset. So determining the regulator for them is quite difficult. Two, the creation or mining of the cryptocurrencies takes place globally and hence cannot be controlled. While trading can be banned in India, it will continue in other global trading platforms which can be easily accessed by Indians. Three, the investors of these crypto assets are mostly not the investors of traditional asset classes.

Hence it may not be possible for issuing reactive regulations for these crypto assets and absorb them into the mainstream as done for other tech innovations. A global consensus on crypto mining and trading could be the way forward, with uniform rules and regulations framed for crypto trading platforms in all countries. While the contours of the Cryptocurrency Bill to be presented in Parliament is awaited, the last word has not yet been said on taming this beast.

The last two decades have seen rapid innovation in fintech with these digital entities seeping into spaces hitherto occupied by traditional banks, insurance companies, stock brokers, investment advisories, and so on. Some of these entities have tried pushing the boundary between the acceptable and unacceptable, ethical and unethical, legal and illegal and, in many instances, regulators have been caught sleeping at the wheel. Regulators will have to upskill and increase the manpower equipped to deal with fintech entities so that they are not caught off-guard, once too often.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , , , , ,

Bank officers’ union launches nationwide movement against privatisation, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


New Delhi, Bank officers’ union on Tuesday launched nationwide movement against proposed privatisation of stat-owned lenders. ‘Bank Bachao Desh Bachao Rally’ was held at New Delhi’s Jantar Mantar on Tuesday attended by officers and other stakeholders from various parts of the country, the All India Bank Officers’ Confederation (AIBOC) said in a statement.

Addressing the rally, AIBOC General Secretary Soumya Datta appealed to the government to withdraw the Banking Laws (Amendment) Bill, 2021, which has been listed for introduction and passing in the winter session of Parliament.

“In case the government tables and passes the bill paving the way for the privatisation of the public sector banks, the bank officers will unite all the stakeholders of the banking sector and launch a nationwide agitation,” he said, urging the bankers to draw inspiration from the farmers movement.

Finance Minister Nirmala Sitharaman while presenting Budget 2021-22 earlier this year had announced the privatisation of public sector banks (PSBs) as part of disinvestment drive to garner Rs 1.75 lakh crore.

The Banking Laws (Amendment) Bill, 2021, to be introduced during the session is expected to bring down the minimum government holding in the PSBs from 51 per cent to 26 per cent.

In the last concluded session, Parliament passed a bill to allow privatisation of state-run general insurance companies.

The General Insurance Business (Nationalisation) Amendment Bill, 2021, removed the requirement of the central government to hold at least 51 per cent of the equity capital in a specified insurer.

The Act, which came into force in 1972, provided for the acquisition and transfer of shares of Indian insurance companies and undertakings of other existing insurers in order to serve better the needs of the economy by securing the development of general insurance business.

Government think-tank NITI Aayog has already suggested two banks and one insurance company to Core Group of Secretaries on Disinvestment for privatisation.

According to sources, Central Bank of India and Indian Overseas Bank are likely candidates for the privatisation.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , ,

We will walk the talk on introducing crypto Bill in Parliament this session: Sitharman

Banking & Finance

[ad_1]

Read More/Less


Finance Minister Nirmala Sitharaman on Tuesday said that the Government was working on a new Bill on cryptocurrency and that this Bill would be introduced in the ongoing session of Parliament after Cabinet approval.

The ongoing winter session of Parliament commenced on November 29 and is slated to end on December 23.

Replying to questions on cryptocurrency in Rajya Sabha today, Sitharaman said the new Bill takes into account the rapidly changing dimensions in virtual currency space and incorporates certain features of earlier Bill that could not be taken up.

‘Genuine intent’

She asserted that the government had “genuine intent” of introducing the Bill last time itself in the Monsoon session and that it would be incorrect to infer or conclude that the government would this time too not go ahead with enactment of law. “Once the Cabinet clears the new Bill, it will come into the House,” she said.

Sitharaman, however, did not indicate how the government intends to approach the issue of private cryptocurrency and whether the new Bill will look to ban private cryptocurrencies or not.

It may be recalled that a Bill on Cryptocurrency and Regulation of Official Digital Currency for introduction in the Lok Sabha had been recently included in the Lok Sabha Bulletin-Part II, as part of the government business expected to be taken up during the ongoing winter session.

According to the Lok Sabha Bulletin, the Bill seeks to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI) for the ongoing winter session of Parliament. It also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.

Asked if the government proposes to ban misleading advertisements on cryptos in the media, she told the Rajya Sabha on Tuesday that the guidelines of Advertising Standards Council of India are being studied and their regulations are also being looked into “so that we can take, if necessary, some kind of position or a decision to see how we can handle it”.

In a written reply to a few questions on cryptocurrency posed by Rajya Sabha members, Sitharaman said cryptocurrencies including non-fungible tokens are unregulated in India and the government does not collect data on transactions in cryptocurrency.

Crypto frauds

She also revealed that as many as eight cases of cryptocurrency frauds are under investigation by the Enforcement Directorate. “Further disclosure of information may not be in larger public interest”, she added.

Sitharaman also said the government, RBI and SEBI have been cautioning people about the cryptocurrencies that could be a “high risk” area and “more can be done” to create awareness.

A study was conducted by the government through a research firm on ‘Virtual Currencies: An Analysis of the Legal Framework and Recommendations for Regulation’ in July 2017. Thereafter, the government constituted an inter-ministerial committee (IMC) in November 2017 under the chairmanship of the secretary (economic affairs) to study issues related to virtual currencies and propose specific action to be taken in this matter.

The committee, inter-alia, recommended that all private cryptocurrencies be prohibited in India. The panel also recommended that it would be advisable to have an open mind regarding the introduction of an official digital currency in India.

Meanwhile, Minister of State for Finance Pankaj Chaudhary, said in a written reply that RBI has been cautioning users, holders and traders of virtual currencies vide public notices on December 24, 2013, February 1, 2017, and December 5, 2017, that dealing in virtual currencies is associated with potential economic, financial, operational, legal, customer protection and security-related risks.

Also, the RBI had, in a circular dated May 31, 2021, advised the regulated entities to continue to carry out customer due diligence processes for transactions on virtual currencies, in line with the regulations governing standards for know your customer, anti money laundering, combating of financing of terrorism, obligations under the Prevention of Money Laundering Act 2002, he said.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

FM Sitharaman, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


Finance Minister Nirmala Sitharaman on Tuesday said that the Indian government will introduce the bill on cryptocurrencies in the Parliament after Cabinet’s approval. The minister also said that regulation of non-fungible tokens (NFTs) is also being considered.

“Government will soon bring a bill after the Cabinet clears it. It was not brought in last time as there were some other dimensions that had to be looked into. Rapidly a lot of things had come into play. Intent was to improve the bill,”Sitha raman said during the Question Hour in Rajya Sabha. Speaking on the advertisement controversy surrounding cryptocurrencies, she said that no decision has been taken on banning the advertisements. “ASCI governs advertising & formulates guidelines.All its regulations are being looked at so that we can see what can be done on advertisements.”

The minister on Monday had said that there is no proposal to recognise Bitcoin as a currency. Further, she said that the government does not collect data on Bitcoin transactions.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, listed in the ongoing Winter Session of Parliament, seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrencies and its uses.

Follow and connect with us on , Facebook, Linkedin



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , ,

Finance Minister, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Finance Minister Nirmala Sitharaman on Tuesday informed Parliament that the Centre has issued no specific directions to banks asking them not to give loans to “sensitive customers” like police personnel.

Sitharaman, during Question Hour in the Rajya Sabha, said there is no “official stated policy” directing banks not to give loans to certain categories of customers. “Banks make assessments based on KYC and other ratings like civil ratings. I don”t think any specific instructions are given to banks — please be careful not to lend to these people,” she said in the Upper House while responding to a supplementary queries.

However, banks do exercise a certain level of discretion based on their available KYC (know your customer), she added. Minister of State for Finance Bhagwat Kishanrao Karad said banks do have “problems” in lending to police and politicians. Banks see track record before lending to these customers, he added.

Responding to another question on banks not lending to politically exposed persons (PEPs), the Union Finance Minister said, “…this is more from the point of view of large sums of money are transferred from one account to another complying with the global requirement where the financial action on terror funding happens.” So according to them, the minister said every account will have to be kept on a tab where huge money is transferred to a sensitive bank account, she added.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

Banning cryptocurrencies could lead to more unlawful usage, says BACC, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


A blanket ban on cryptocurrencies will encourage usage by non-state players, which will further increase unlawful usage, said Blockchain and Crypto Assets Council (BACC), part of the Internet and Mobile Association of India (IAMAI), in a statement on Thursday.

This statement comes days after the government listed the Cryptocurrency Bill in the Parliament for introduction. The Bill urges ban on all private cryptocurrencies, with some exceptions.

There would be several negative outcomes of a ban such as zero accountability and traceability of the origin and end usage of the cryptocurrencies; besides a complete evasion of taxes, IAMAI said.

A ban will also adversely impact retail investors, it added.

BACC has always been in favour of prohibiting the usage of private cryptocurrencies as a currency in India by law since usage as currency is likely to interfere with monetary policy and fiscal controls, it said. However, BACC has also advocated their use only as an asset.

The Council believes that ‘smartly regulated crypto assets business’ will protect investors, help monitor Indian buyers and sellers, lead to better taxation of the industry, and limit illegal usage of cryptos.

The Blockchain and Crypto Assets Council (BACC) represents crypto exchanges based in India and includes companies like CoinDCX, WazirX, and Coinswitch Kuber.

The Council believes that the efforts of the exchanges should be supported by law, which should enable them to provide safer services to investors and fair taxes to the government.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

Exchanges on tenterhooks as they await details of proposed cryptocurrencies Bill

Banking & Finance

[ad_1]

Read More/Less


Cryptocurtency exchanges in India are on a wait and watch mode before they plan their next steps as a consequence of the Government’s move to introduce legislation to regulate the crypto industry. While the draft Bill proposes to ban all private cryptocurrencies, the exchanges wait for the details of the proposed law.

Cryptocurrencies prices drop in India after Centre moves bill

Nischal Shetty, Founder, WazirX, said, “While the description of the draft Bill appears to be the same as in January 2021, several noteworthy events have occurred since January. First, the Parliamentary Standing Committee invited a public consultation, and then our Prime Minister himself came forward to call for crypto regulations in India. That being said, let’s respectfully wait to find out more about the draft Bill to be tabled in Parliament.”

Crypto boom in India: Despite regulatory concerns, over 400 start-ups jump onto crypto ecosystem

Wednesday morning, Bitcoin’s price dropped 16.75 per cent on WazirX, Ethereum plunged 12.1 per cent, Shiba Inu dropped over 20 per cent, Dogecoin was down by over 16 per cent, Sandbox by 4 per cent and USDT or Tether by over 14 per cent.

This happened after the Lok Sabha’s summary of Bills to be tabled in the winter parliamentary session released the evening before mentioned that the government is seeking to prohibit private cryptocurrencies in the description of The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.

Will inputs be included?

Avinash Shekhar, Co-CEO, ZebPay, said, “We’re awaiting further details on the Bill that is going to be presented in the winter session of Parliament. There have been many positive steps taken by the government to learn and understand crypto and its impact on all stakeholders — investors, exchanges, policymakers. So, we’re looking forward to a crypto Bill that takes into consideration all the inputs from those discussions.”

“We welcome the move from the government. A well-assessed and thought-through regulation will pave the way for greater adoption of the technology and will help millions of Indians embrace this new-age asset class. We are looking forward to the next steps on this,” a CoinDCX spokesperson said.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , , , , ,

Govt lists bill in winter session to ban all private cryptocurrency, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


NEW DELHI: The government on Tuesday listed the Cryptocurrency and Regulation of Official Digital Currency Bill for introduction during the winter session of Parliament, which will seek to “prohibit all private cryptocurrencies” but provide for certain exceptions “to promote the underlying technology” and “its uses”.

The proposed bill — which will also put in place a framework for Reserve Bank of India (RBI) to create an official digital currency — comes amid a raging debate over whether the government should ban private cryptocash or regulate them like shares and bonds.

A very vocal lobby led by unregulated exchanges has been campaigning for their inclusion under a regulatory system, as opposed to an outright ban the government had earlier proposed.

RBI has been backing a ban on cryptocurrency, arguing it can be used for illegal purposes apart from limiting the central bank’s ability to manage inflation, foreign exchange and the overall economy.

It, however, sees no problems with the use of technology for managing logistic chains or land records but is opposed to its use as a financial instrument.

It cannot be called a currency since the sovereign only enjoys that right,” the apex bank has pointed out. The Centre, however, seems inclined to ban bitcoins, making it clear that dabbling in them carries a clear risk.

While there have been observations that a ban will be tough to enforce, or that it will only drive the entire growing trade underground, those supporting a prohibition have argued that even gambling or drug trafficking are illegal and those found violating the law face strict action.

The divergent views had prompted PM Narendra Modi to recently hold consultations and call for global cooperation on the issue. While China recently banned all cryptocurrencies, El Salvador is the sole country to permit them for official use.

Government sources said the bill has not been finalised yet and is unlikely to be introduced during the first week of the winter session that starts on Monday. But all eyes are on how the government defines the “uses” of cryptocurrency.

In case it allows it to be treated as an asset or a commodity, as a section within the government has argued, it will pave the way for their trading on exchanges. The fear is that trading would allow the instrument to be used as a store of value, although officially it will not be a medium of exchange. There are concerns that the moment trading is permitted, people may use cryptocurrencies such as bitcoins, for making part payment for purchase of property or for overseas transfer.

While the RBI had banned investments in cryptocurrencies, the Supreme Court had held the circular illegal. In the meantime, the government-appointed committee headed by SC Garg, the then economic affairs secretary, submitted its recommendations seeking a ban and the government had planned to introduce a legislation during the Budget session.

But with the session cut short, the bill “prohibiting” private cryptocurrencies could not be introduced, resulting in a fresh round of consultations.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

No exception from ownership norms for PSBs on selloff list, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


NEW DELHI: The Reserve Bank of India (RBI) is unlikely to make an exception for ownership changes to privatise state-run banks. Instead, it will issue comprehensive guidelines that will also deal with corporate ownership of Indian lenders.

Sources told TOI that the RBI will soon start the process of new norms, but it is yet to take a decision on allowing corporate houses into the banking business amid sharp divisions on the issue.

The current norms do not allow corporate houses to enter the arena, although several large business houses such as the Birlas and the Tatas have a large financial services presence and may be interested in either acquiring a stake or setting up a bank in future. An internal working group set up by the RBI had submitted a new licensing policy for banks several months ago but the regulator is yet to take a call on the issue, given that it has received multiple inputs from stakeholders and it has been caught up with combating the impact of Covid on the economy.

The Centre and the RBI have agreed on the legislative amendments that may be required to pave the way for privatisation of banks, for which three candidates have been identified.

First off the block is expected to be IDBI Bank, whose name has been made public, with Indian Overseas Bank and Central Bank of India the other candidates in the pipeline, which have been shortlisted by the Niti Aayog with the final decision to be taken by a core group of secretaries. IDBI Bank was on the sell-off list for the current financial year along with a state-run insurance company and two public sector banks. But all the four transactions are not possible until the next financial year.

The law to allow for privatisation of a general insurer has been cleared by Parliament but Dipam is yet to make much headway. And, in the absence of a road map for shareholding in banks, the IDBI Bank sale is not expected anytime soon as bidders would want to know the eligibility conditions and how much they can buy and how they need to dilute.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,
1 2 3