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

Picture courtesy thefinancialbrand.com

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.

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.