RBI advices govt to cut its stake in PSUs
In a video-conference with the Prime Minister Shri Narendra Modi on Thursday, chiefs of RBI, SEBI and IRDA offered suggestions pertaining to monetisation of public assets to raise funds. In addition, each regulator presented a view of the current situation along with an evaluation of programmes undertaken during the pandemic.
The Reserve Bank of India (RBI) advised government to reduce its stake in state-controlled banks from over 50% at present to 26%. It also urged the government to extend the tenure of the bosses of these PSBs in order to manage these financial organisations in a more professional manner. The Centre has, however, maintained that it will hold a stake of minimum 52% in PSU banks. “There were discussions around whether it was a good time to disinvest or should the government wait longer,” a source familiar with the discussion said.
Another suggestion offered was that the Centre should bring foreign investors through infrastructure investment trusts (In-VITs) as was being implemented in the case of National Highways Authority of India (NHAI) and Power Grid Corp of India.