New Delhi (NVI): The Centre has lifted the embargo on grant of government business to private banks, enabling banks to participate in all developmental activities.
With the lifting of the said embargo, private sector banks can now carry out government-related banking transactions such as taxes and other revenue payment facilities, Ministry of Finance said in a statement.
“Private banks can now be equal partners in development of the Indian economy, furthering the government’s social sector initiatives and enhancing customer convenience,” Finance Minister Nirmala Sitharaman’s office tweeted.
Embargo lifted on grant of Govt business to private banks. All banks can now participate. Private banks can now be equal partners in development of the Indian economy, furthering Govt's social sector initiatives, and enhancing customer convenience. @FinMinIndia @DFS_India
— NSitharamanOffice (@nsitharamanoffc) February 24, 2021
“This step is expected to further enhance customer convenience, spur competition and higher efficiency in the standards of customer services,” the statement added.
Private sector banks, which are at the forefront of imbibing and implementing latest technology and innovation in banking, will now be equal partners in development of the Indian economy and in furthering the social sector initiatives of the Government, it added.
In addition to this, there is now no bar on Reserve Bank of India (RBI) for authorization of private sector banks (in addition to public sector banks) for government business, including government agency business.
-CHK
