The government today ruled out privatization of state-owned bank and added that it has not given any direction for consolidation of the PSU banks.
"No directive has been issued by the Government and Reserve Bank of India (RBI) on consolidation of the banks, as of now and there is no proposal to transfer the control and management of PSBs to the private sector," Minister of State for Finance P K Bansal said in a written reply to Lok Sabha.
Further, a view is yet to be taken on the Reports of the Raghuram Rajan and Anwarul Hoda Committees' recommendations, he said.
The Amendment to the Banking Regulation Act is in accordance with best international practices, he said.
On a call given by the United Forum of Bank Unions (UFBU), the employees of PSU Banks were on strike for two days on September 24 and 25, he said, adding, the loss of business due to strike is not possible to quantify.
In another reply Bansal said the government has recently advised the National Bank for Agriculture and Rural Development, to review the existing norms and guidelines of Kisan Credit Card.
All the banks have a robust internal grievance redressal mechanism to address customer complaints, including denial of Kisan Credit Card by the banks to the farmers, he said.
Under Debt Consolidation and Waiver Scheme for States, he said, the past Central loans contracted till March 31, 2004 and outstanding as on March 31, 2005 are to be consolidated and rescheduled for repayment in 20 equal annual installments at a reduced interest rate of 7.5 per cent.
This is subject to States enacting Fiscal Responsibility and Budget Management Acts with suggested core provisions, he added.