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Thursday, March 04, 2021

Govt offices, PSUs and state-run corporations can now use private banks for certain purposes

Last year in March, the government had issued directions asking all government bodies to shift their bank accounts from private banks to nationalised ones from April 1, 2020. I

By: Express News Service | Mumbai |
January 21, 2021 1:31:06 am
Maharashtra, Maharashtra Public Sector Undertakings, Maharashtra PSUs, Maharashtra banking transactions, Maharashtra banking, Maharashtra news, indian express newsIn July, the state government allowed banking transactions in district cooperative banks. (Representational)

Almost ten months after the Maharashtra government issued directions to government bodies, authorities and corporations to conduct all banking transactions through public sector banks, the state cabinet on Wednesday allowed government offices, Public Sector Undertakings (PSUs) and state-run corporations to use private banks for limited purposes.

Banking transactions with private banks are meant only for debiting salaries and other allowances of employees and online services of banks can be availed without any additional charges being levied, as per the cabinet decision.

The cabinet has also allowed pensioners to open their accounts in the list of government-approved private banks, which will have to enter into an agreement with the government soon.

Last year in March, the government had issued directions asking all government bodies to shift their bank accounts from private banks to nationalised ones from April 1, 2020. In July, the state government allowed banking transactions in district cooperative banks.

The government had taken the decision in the wake of the Yes Bank crisis. The move was also seen as a setback to former chief minister and Leader of Opposition Devendra Fadnavis, who had faced allegations of favouring a leading private bank where his wife, Amruta, works in a senior position

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