Embargo Lifted On Private Banks From Engaging In Govt-Related Transactions

New Delhi: In a further boost to privatisation, the Union government on Wednesday decided to lift embargo on private sector banks from conducting government-related banking transactions.

“Private banks can now be equal partners in the development of the Indian economy, furthering the government’s social sector initiatives and enhancing customer convenience,” Finance Minister Nirmala Sitharaman tweeted.

निजी बैंक अब सरकारी बैंकों के साथ बनेंगे देश के विकास में बराबर के साथी। निजी बैंकों के ऊपर सरकारी व्यवसाय पर लगी रोक हटी। उपभोक्ताओं को मिलेगी बेहतर सेवाएँ व सुविधाएं। सरकार के सामाजिक और वित्तीय समावेश योजनाओं में निजी बैंक भी होंगे भागीदार। @FinMinIndia https://t.co/ITtxalwNbx

— NSitharamanOffice (@nsitharamanoffc) February 24, 2021

Till now, a limited number of private banks were allowed to engage in government-related transactions like taxes, pension payments, small savings schemes.

According to the government, this step will enhance customer convenience, spur competition and result in higher efficiency in customer services.

Prime Minister Narendra Modi had stressed on the need for privatisation during his recent speech in Lok Sabha.