<h1>Union Cabinet Approves Plan to Reduce Government Stake in PSBs to 52% for Basel-III Compliance.</h1> The Union Cabinet, led by the Prime Minister, approved a plan for Public Sector Banks (PSBs) to raise capital by reducing government ownership to 52% gradually. This move aims to meet the increased capital requirements under Basel-III norms, which mandate a minimum Tier-1 capital of 7% and an additional 2.5% as a Capital Conservation Buffer. The government, controlling 22 of 27 PSBs, plans to allow these banks to raise approximately Rs. 1,60,825 crore from the market while maintaining a minimum 52% government stake. This strategy is expected to reduce the government's net capital support requirement to Rs. 44,395 crore after dividend receipts.