In a discussion paper, Reserve Bank of India (RBI) suggested that the government may consider reducing its stake below 51 per cent in state-run banks.
While reducing its stake, government may take certain protective rights by amending the statutes governing the PSU banks, the paper argues.
Reducing government’s stake below the 51 per cent in state-run banks would ease the fiscal burden on account of recapitalisation of these banks, RBI feels.
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