Finance Ministry will Work with RBI on Banks Privatisation: Nirmala Sitharaman

The government will work with the Reserve Bank of India (RBI) for the execution of the bank privatisation plan announced in the budget, said Union Finance Minister Nirmala Sitharaman.

She said this while speaking to reporters in the financial capital and added, ‘‘The government has no plan to form any bank investment company to house the government stakes in banks.''

In the Union Budget presented last week, Sitharaman had announced the privatisation of two banks as part of its disinvestment plan. Bank unions have opposed the move.

"The details are being worked out. I have made the announcement but we are working together with the RBI," she said, when asked about the proposal.

She, however, declined to comment on any specific details about which will be the candidate chosen for privatisation.

"We will let you know when the government is ready to announce," she said.

Commenting on the bad bank, the Finance Minister said the government may have to give some guarantee for the National Asset Reconstruction Company (ARC), but stressed that this is a solution which has come from the banks itself and will also be led by them.