Privatization of Companies, Fake Currency & Bank Mergers

The Government has given approval for Privatisation of 24 CPSEs including Subsidiaries, Units and Joint Ventures with the sale of majority stake and transfer of management control.

The Government follows a policy of strategic disinvestment of CPSEs, which are not in ‘priority sectors’. 

 (i) National Security; 

(ii) Sovereign function at arm’s length, and 

(iii) Market Imperfections and Public Purpose.

Strategic disinvestment of is being guided by the basic economic principle that Government should discontinue in sectors, where competitive markets have come of age and economic potential of such entities may be better discovered in the hands of strategic investor due to various factors such as infusion of capital, technological up-gradation, and efficient management practices; and would thus add to the GDP of the country.

Fake Currency :

As per data of the National Crime Records Bureau, there is a declining trend in Fake Indian Currency Notes (FICN) seized during the years 2017, 2018 and 2019.

a. FICN Coordination Group (FCORD) has been formed by the Ministry of Home Affairs to share intelligence/information among the security agencies of the state/center to counter the problem of circulation of fake currency cases.

b. A Terror Funding and Fake Currency Cell (TFFC) has been constituted in NIA to investigate terror funding and fake currency cases.

c. Security at the international borders has been strengthened by using new surveillance technology, deploying additional manpower for round the clock surveillance, establishing observations posts along the international border, erection of border fencing and intensive patrolling.

Bank Mergers:

The objective of amalgamation of the banks is to facilitate consolidation among Public Sector Banks (PSBs) to create strong and competitive banks capable of achieving economies of scale and realization of synergy benefits with wider product and service offering for customers.

The amalgamation of Vijaya Bank and Dena Bank into Bank of Baroda (BoB) was effected on 1.4.2019. As per the input received from Bob, the total number of branches of the amalgamating banks i.e. BoB.

Further stated that BoB has apprised that the rural footprint of the amalgamated bank has also increased since amalgamation and with the increased reach and enhanced business engagement with the rural people and farmers, visible gains are incurred including, inter alia, priority sector lending has increased