Government pushes IDBI Bank disinvestment process

Current Context: Reserve Bank of India plans to privatize IDBI Bank and disinvest in it.

Reserve Bank of India is considering tweaking the promoter criteria which will bring a wider pool of bidders for public sector banks.
The budget for 2021-22 proposed to privatize two public sector banks along with a general insurance company.
A new strategic disinvestment policy has categorized banking as a strategic sector where the government is aiming to maintain a bare minimum presence.
Current bank privatization has faced some encumbrances as the norms of RBI are cogent that any existing bank cannot promote a new bank.
The Banking Laws (Amendment) Bill, 2021 is yet to be introduced in the house.
One of the considerations is to allow the existing private banks to take a larger share in the public sector banks earmarked for privatization.