Privatisation-bound banks may come out with VRS Banks asked to keep CCTV recordings of DeMo period

New Delhi, June 8: Two state-owned banks being picked up for privatisation by the government are likely to come out with an attractive voluntary retirement scheme (VRS) to get rid of the extra flab, sources said.

Finance minister Nirmala Sitharaman while unveiling Budget 2021-22 on February 1 had announced that the government proposed to take up the privatisation of two public sector banks (PSBs) and one general insurance company.

An attractive VRS will make them lean and fit for takeover by the private sector entities that are keen to enter the banking space, the sources said.

VRS is not forced exit but option for those who would like to take early retirement with good financial package, the sources said, adding that it has been done in the past before the consolidation of some of the PSBs.

The Niti Aayog, which has been entrusted with the job of identifying suitable candidates for the privatisation, has recommended the names to a high-level panel headed by Cabinet secretary Rajiv Gauba.

Central Bank of India, Indian Overseas Bank, Bank of Maharashtra and Bank of India are some of the names that may be considered for privatisation by the Core Group of Secretaries on Disinvestment.

Following clearance from the Core Group of Secretaries, the finalised names will go to the Alternative Mechanism

Mumbai, June 8: The RBI on Tuesday asked banks to preserve the CCTV recordings of their branches and currency chests from November 8, 2016, to December 30, 2016, till further orders with a view to assisting the enforcement agencies to take actions against persons involved in illegal activities during the demonetisation period.

The government had demonetised the then in circulation high value currency notes of Rs 500 and Rs 1,000 on November 8, 2016. As part of the exercise, the government gave the opportunity to the people to exchange junked currency notes or deposit them in their bank accounts. Huge crowds were witnessed at bank branches across the country for exchanging or depositing the demonetised currency.

On the basis of various inputs, the investigative agencies also started probing matters relating to illegal accumulation of new currency notes.

In order to facilitate such investigations, the RBI has asked the banks not to destroy the CCTV recordings of the period of demonetisation till further orders.

The present order is a continuation of an earlier advisory issued to the lenders in December 2016 to preserve the CCTV footage of operations at bank branches and currency chests.

Of the Rs 15.41 lakh crore worth Rs 500 and Rs 1,000 notes in circulation on November 8, 2016, when the note ban was announced, notes worth Rs 15.31 lakh crore have been returned.

(AM) for its approval and eventually to the Cabinet headed by Prime Minister Narendra Modi for the final nod.

Changes on the regulatory side to facilitate privatisation would start after the Cabinet approval.