February 25, 2021 3:05:34 am
Lifting the embargo on grant of government business to private banks, the government on Wednesday allowed all private sector banks to participate in government-related business like collection of taxes, pension payments and small savings schemes.
At present, only a few large private sector banks are allowed to conduct government-related business. “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,” Finance Minister Nirmala Sitharaman said in a tweet. This step is expected to further enhance customer convenience, spur competition and higher efficiency in the standards of customer services, an official statement said.
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, the statement said. “With the lifting of the embargo, there is now no bar on RBI for authorisation of private sector banks (in addition to public sector banks) for government business, including government agency business. The government has conveyed its decision to RBI,” it added.
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